September 2018 International Trade Compliance Update

International Trade Compliance Update

(Covering Customs and Other Import Requirements, Export Controls and Sanc- tions, Trade Remedies, WTO and Anti-Corruption)

Newsletter | September 2018

In This Issue:

World Trade Organization (WTO) World Customs Organization (WCO) Other International Matters The Americas - Central America

The Americas - North America The Americas - South America Please see our Webinars, Meetings, Seminars section for the schedule of webinars in the 2018 Global Trade and Supply Chain Webinar Series - Con- Asia-Pacific tinuing Challenges in Global Trade, contacts and information on how to regis- Europe, Middle East and North Africa ter for one or more of these complimentary webinars, as well as information on Africa (except North Africa) other events. In addition, there are links to video recordings of past webinars and registration information for the 2018 Year-End Review in Santa Clara and links Trade compliance enforcement ac- to the video recordings of the 2017 Year-End Review in Santa Clara. tions - import, export, IPR, FCPA Newsletters, reports, articles, etc. Webinars, Meetings, Seminars, etc. WTO TBT Notifications CBP Rulings: Downloads and Searches CBP Rulings: Revocations or Modifi- cations European Classification Regulations Amendments to the CN Explanatory Notes Save the Date: Nov. 14-15, 2018 – Santa Clara & Webcast

Section 337 Actions To keep abreast of international trade-related news, visit our blogs: Antidumping, Countervailing Duty For International Trade Compliance Updates, please regularly visit and Safeguard Investigations, Or- www.internationaltradecomplianceupdate.com. ders & Reviews For additional articles and updates on trade sanctions and export controls, please visit: http://sanctionsnews.bakermckenzie.com/ regularly.

For resources and news regarding international trade, particularly in Asia, please visit our Trade

Editor, International Trade Com- Crossroads blog at http://tradeblog.bakermckenzie.com/. pliance Update To see how BREXIT (the UK exiting the EU) may affect your business, visit

Stuart P. Seidel http://brexit.bakermckenzie.com/ Washington, D.C. For additional compliance news and comment from around the world, please visit +1 202 452 7088 http://globalcompliancenews.com/. [email protected]

This may qualify as “Attorney Advertis- ing” requiring notice in some jurisdic- Note: Unless otherwise indicated, all information in this Update is taken from official gazettes, official tions. Prior results do not guarantee a websites, newsletters or press releases of international organizations (UN, WTO, WCO, APEC, IN- similar outcome. TERPOL, etc.), the EU, EFTA, EAEU, Customs Unions or government agencies. The specific source may usually be obtained by clicking on the blue hypertext link. Please note that as a general rule, Please see copyright and acknowl- information related to fisheries is not covered. edgements on the last page

Baker McKenzie World Trade Organization (WTO) The International Trade Compliance Update is a publication of the Glob- Recent disputes al International Commercial and Trade Practice Group of Baker The following disputes have been recently brought to the WTO. Click on the case McKenzie. Articles and comments (“DS”) number below to go to the WTO website page for details on that dispute. are intended to provide our readers with information on recent legal DS. No. Case Name Date developments and issues of signifi- cance or interest. They should not United States – Safeguard Measure on Imports of Crystalline Silicon DS 562 be regarded or relied upon as legal Photovoltaic Products Request for Consultations by China 16-08-18 advice or opinion. Baker McKenzie United States – Certain Measures Related To Renewable Energy DS 563 advises on all aspects of Interna- Request for Consultations by China United States – Certain Measures on Steel and Aluminium Products tional Trade law. DS 564 20-08-18 Request for Consultations by Turkey United States - Tariff Measures on Certain Goods from China II - DS 565 27-08-18 Comments on this Update may be Request for Consultations by China sent to the Editor: Stuart P. Seidel DSB activities Washington, D.C. +1 202 452 7088 During the period covered by this update, the Dispute Settlement Body (DSB) or [email protected] parties to a dispute took the following actions or reported the following activities. Requests for a panel are not listed (click on “DS” number to go to summaries of the case, click on “Activity” to go to the latest news or documents): A note on spelling, grammar and dates-- In keeping with the global nature DS No. Case Name Activity Date of Baker McKenzie, the original Indonesia — Safeguard on Certain Iron or spelling, grammar and date format- DS 490 Appellate Body issues Steel Products [Complainants: Chinese DS 496 report ting of non-USA English language Taipei, Vietnam] material has been preserved from European Communities — Measures Af- EU request for second the original source whether or not DS 316 fecting Trade in Large Civil Aircraft [Com- 15-08-18 compliance panel the material appears in quotes. plainant: US] Indonesia — Importation of Horticultural Matter referred to Arbi- Translations of most non-English DS 478 Products, Animals and Animal Products tration language documents are unofficial [Complainant: US] and are performed via an automat- Ukraine — Anti-Dumping Measures on ed program and are for information DS 493 Ammonium Nitrate [Complainant: Russian Ukraine files appeal 23-08-18 purposes only. Federation] Russia — Measures Affecting the Importa- Credits: DS 499 tion of Railway Equipment and Parts Ukraine files appeal thereof [Complainant: Ukraine] 27-08-18 Unless otherwise indicated, all in- United States — Countervailing Measures formation is taken from official in- DS 505 on Supercalendered Paper from Canada US files appeal ternational organization or govern- [Complainant: Canada] ment websites, or their newsletters or press releases. TBT Notifications

Source documents may be Member countries of the WTO are required under the Agreement on Technical accessed by clicking on the blue Barriers to Trade (TBT Agreement) to report to the WTO all proposed technical hypertext links. regulations that could affect trade with other Member countries. The WTO Secre- tariat distributes this information in the form of “notifications” to all Member coun- This Update contains public sector infor- tries. See separate section on for a table which summa- mation licensed under the Open Gov- WTO TBT Notifications ernment Licence v3.0 of the United King- rizes notifications posted by the WTO during the past month. dom. In addition, the Update uses material pursuant to European Commission policy as implemented by Commission Decision of 12 December 2011.

International Trade Compliance Update | September 2018 2

Baker McKenzie World Customs Organization (WCO) Draft agenda released for 62nd Session of the HSC The August 22, 2018, Customs Bulletin and Decisions published by US Customs and Border Protection contains the dates and complete draft agenda for the sixty-second session of the Harmonized System Committee of the WCO.

The International Convention on the Harmonized Commodity Description and Coding System (“Harmonized System (or “HS”) Convention”) established the Harmonized Commodity Description and Coding System (“Harmonized System” or “HS”), an international nomenclature system. Article 6 of the HS Convention establishes a Harmonized System Committee (“HSC”), composed of representatives from each of the contracting parties to the HS Convention. The HSC’s responsibilities include issuing classification decisions on the interpretation of the Harmonized System. Those decisions may take the form of published tariff classification opinions concerning the classification of an article under the HS or amendments to the Explanatory Notes to the HS. The HSC also considers amendments to the legal text of the Harmonized System. The HSC meets twice a year in Brussels, Belgium. The next session of the HSC will be the sixty-second and it will be held from September 17, 2018 to September 28, 2018.

Announcements and news releases [dd-mm-yy]

Date Title WCO attends the International Conference on Customs Laboratories in the 01-08-18 Russian Federation WCO successfully conducts ‘People Diagnostics’ mission in Ethiopia, 16th-24th July 2018 National Workshop in Dakar, Senegal, on WTO Agreement on Customs Valua- 02-08-18 tion and Transfer Pricing The WCO Regional Workshop for the East South Africa (ESA) region WCO new e-learning course on a Single Window environment 03-08-18 WCO Workshop to support Ethiopian Customs with Risk Management WCO supports Nepal on Advance Ruling System and improvement of tariff 07-08-18 classification 14-08-18 COPES Regional Seminar in Mauritius WCO supports Cape Verde to improve KPIs for Strategic Dashboard establish- 20-08-18 ment WCO supports Iran with enhancing ICT implementation and AEO Programme 21-08-18 South American WCO Member – Bolivia – Benefits from Mercator Programme Second Meeting of APEC’s SCCP marks important advances in Customs cooperation The WCO C-RED project follows up on the finalization of the Standard Operat- ing Procedures for relief consignments in Liberia and Sierra Leone 22-08-18 WCO support mission to the General Department of Customs and Excise (GDCE) of Cambodia focused on WTO TFA implementation and the further development of a new Strategy and Work Program for Reform and Moderniza- tion WCO publishes new guides supporting the implementation of AEO programmes 24-08-18 and MRAs 27-08-18 Pacific Islands Passenger Controls Workshop and Training (Suva, Fiji) WCO National Workshop on Coordinated Border Management held in Montevi- deo, Uruguay 29-08-18 Further WCO Activity to Strengthen Sierra Leone National Revenue Authority’s Customs Valuation Controls WCO contributes to strengthening Zimbabwe’s capacities on Authorised Eco- 30-08-18 nomic Operator and Post Clearance Audit

International Trade Compliance Update | September 2018 3

Baker McKenzie

Date Title WCO’s WACAM Project supports Nigeria Customs Service and Stakeholders in the preparation of the Time Release Study (TRS) 31-08-18 Zambia Revenue Authority joins the WCO Mercator Programme WCO Secretary General addresses Scholars in Japan on Customs modernization

Other International Matters CITES Notification to Parties The Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES) has issued the following notifications to the parties:

Date Title 2018/069 Registration of operations that breed Appendix-I animal species in 24-08-18 captivity for commercial purposes 2018/070 Registration of operations that breed Appendix-I animal species in 27-08-18 captivity for commercial purposes

The Americas - Central America

PANAMA Official Gazette The following documents of interest to international traders (other than food safety standards) were published in the Gaceta Oficial – Digital (Official Gazette – Digital) during the period of coverage:

Publication Title Date Law No. 42 (14-08-18) amends an article of law 19 of 2001, which creates a 16-08-18 Special Tax and Customs Regime of Free Tourist Area and of Multimodal Logistical Support In Barú. National Customs Authority (ANA): Res. № 396 (10-08-18) Through which the measures adopted by Resolution No. 134 of April 4, 2017, “For The Migration Process of the Existing Transactions Originated in the Integrated System of 29-08-18 Foreign Trade (SICE) That Fulfill Different Customs Regimes Towards the Official Computer System of the National Customs Authority Denominated Integrated System of Customs Management (SIGA)

The Americas - North America

CANADA Canada launches consultation on preventing steel diversion On August 14, 2018, the Department of Finance announced that it had launched a public consultation on possible safeguard action on imports of the following steel products:

• Steel plate • Concrete reinforcing bar • Energy tubular products

International Trade Compliance Update | September 2018 4

Baker McKenzie

• Hot-rolled sheet • Pre-painted steel • Stainless steel wire • Wire rod

Safeguards are trade measures imposed under international trade rules in ex- ceptional circumstances to respond to import surges that may harm Canadian producers and workers. The Government said it will continue to work with stakeholders to determine if additional products may be considered for safeguard action, and is committed to applying additional safeguards where circumstances warrant their application, in accordance with Canada's international trade obligations.

Comments regarding possible safeguard action can be submitted to the Depart- ment of Finance Canada at [email protected] until Au- gust 29, 2018.

Miscellaneous regulations and proposals The following documents of interest to international traders were published in the Canada Gazette. (The sponsoring ministry, department or agency is also shown. N=notice, PR=proposed regulation, R=regulation, O=Order)

Publication Title Date

ENVIRONMENT: Order 2018-87-05-02 Amending the Non-domestic Substances List pursuant to subsection 87(5) of the Canadian Environmental Protection Act, 1999 (N) ENVIRONMENT/HEALTH: Publication after screening assessment of a substance — methanone, diphenyl- (benzophenone), CAS RN1 119-61-9 — specified on 08-04-18 the Domestic Substances List (subsection 77(1) of the Canadian Environmen- tal Protection Act, 1999) (N) ENVIRONMENT/HEALTH: Publication of final decision after screening assessment of living organisms — Bacillus cereus (B. cereus strain ATCC 14579 and B. subtilis strain 11685-3) — specified on the Domestic Substances List (subsection 77(1) of the Canadian Environmental Protection Act, 1999) (N) ENVIRONMENT: Order 2018-87-05-01 Amending the Domestic Substances List (SOR/2018-163, July 24, 2018) pursuant to the Canadian Environmental Pro- tection Act, 1999 ENVIRONMENT: Order 2018-112-05-01 Amending the Domestic Substances List 08-08-18 (SOR/2018-164, July 24, 2018) pursuant to the Canadian Environmental Pro- tection Act, 1999 ENVIRONMENT: Order 2018-66-05-01 Amending the Domestic Substances List (SOR/2018-165, July 24, 2018) pursuant to the Canadian Environmental Pro- tection Act, 1999 ENVIRONMENT/HEALTH: Publication after screening assessment of two substances — naphthenic acids (NAs), CAS RN1 1338-24-5, and naphthenic acids, calcium salts (calcium naphthenates), CAS RN 61789-36-4 — specified on the Domestic Substances List (subsection 77(1) of the Canadian Environ- 08-18-18 mental Protection Act, 1999) (N) ENVIRONMENT/HEALTH: Publication after screening assessment of 10 fatty acids and derivatives specified on the Domestic Substances List (paragraphs 68(b) and (c) or subsection 77(1) of the Canadian Environmental Protection Act, 1999) (N) ENVIRONMENT: Ministerial Condition No. 19626 pursuant to Para- 08-25-18 graph 109(1)(a) of the Canadian Environmental Protection Act, 1999 (N) [per- mits the manufacture or import of the living organism, Saccharomyces species

International Trade Compliance Update | September 2018 5

Baker McKenzie

Publication Title Date strain ALX104- 148.38, in accordance with the conditions] ENVIRONMENT: Notice to provide information for the risk management of 1,4- benzenediamine, N,N′-mixed phenyl and tolyl derivatives (BENPAT) Pursuant to paragraph 71(1)(b) of the Canadian Environmental Protection Act, 1999 (N) ENVIRONMENT/HEALTH: Publication after screening assessment of 57 substances specified on the Domestic Substances List (paragraphs 68(b) and 68(c) or subsection 77(6) of the Canadian Environmental Protection Act, 1999) (N)

CBSA advance rulings The Canada Border Services Agency (CBSA) has enhanced the Advance Ruling (Tariff Classification and Origin) and National Customs Ruling programs by publishing ruling letters in their entirety, with the applicant's consent, on the CBSA Web site.

No additional advance rulings were posted by the CBSA during the period covered by this Update.

D-Memoranda and CNs revised or cancelled

The following is a list of Canada Border Services Agency D-Memoranda, Cus- toms Notices (CNs) and other publications issued, revised or cancelled during the past month. (Dates are given in yyyy/mm/dd format.)

Date Reference Title 08-01-18 CN 18-12 Coasting Trade Vessels Leaving Canadian Waters Procedures for Verifications of Origin Under a Free Trade 08-07-18 D11-4-20 Agreement (Revised) Information pertaining to the application, collection, and adjust- 08-17-18 D16-1-1 ment of a surtax 08-18-18 D17-1-8 Release Prior to Payment Privilege

Antidumping and countervailing duty cases See separate Antidumping Countervailing Duty and Safeguards Investiga- tions, Orders & Reviews section below.

MEXICO Diario Oficial The following documents of interest to international traders were published in the Diario Oficial de la Federacion: Note: With regard to standards, only those which appear to apply to international trade are listed. (An unofficial English translation is shown.)

Publication Title Date

ECONOMY: Responses to the comments of the Draft Official Mexican Standard PROY-NOM-205-SCFI-2016, Children's Products -Operation of high chairs for the safety of the infant-Specifications and test methods, published on July 10, 08-15-18 2017 ECONOMY: Notice by means of which the amount of the maximum quota for exporting sugar to the United States of America during the period between

International Trade Compliance Update | September 2018 6

Baker McKenzie

Publication Title Date October 1, 2018 and September 30, 2019, is disclosed. Decree by which the Tariff of the Law of the General Import and of Export Taxes is modified. 08-17-18 ECONOMY: Acuerdo that modifies the Acuerdo by which the mechanism of as- signment to import beans under tariff-quota is disclosed FOREIGN RELATIONS: Decree approving the Protocol of Amendment to the In- ternational Convention on the Simplification and Harmonization of Customs 08-21-18 Procedures, done in Brussels on June 26, 1999 HACIENDA: Addendum of Public Call to integrate the Technical Council of the Special Economic Zone of Salina Cruz. ECONOMY: Acuerdo that modifies the Acuerdo by which the quota is announced to import roast and ground coffee free tariff in individual packages 08-27-18 with a weight of up to 40 grams of the tariff fractions 0901.21.01, 0901.22.01 and 0901.90.99. ECONOMY: Acuerdo that gives rise to Decision No. 95 of the Administrative 08-29-18 Commission of the Free Trade Agreement between the United Mexican States and the Republic of Colombia, adopted on August 3, 2018

Antidumping and countervailing duty cases See separate Antidumping Countervailing Duty and Safeguards Investiga- tions, Orders & Reviews section below.

UNITED STATES [NOTE ON FEDERAL REGISTER TABLES IN THE UNITED STATES SECTION BELOW: N=NOTICE, FR=FINAL RULE, PR=NOTICE OF PROPOSED RULEMAKING, AN=ADVANCE NOTICE OF PR, IR=INTERIM RULE, TR=TEMPORARY RULE OR ORDER, RFI/FRC= REQUEST FOR INFORMATION/COMMENTS; H=HEARING OR MEETING; E=EXTENSION OF TIME; C=CORRECTION; RO=REOPENING OF COMMENT PERIOD; W=WITHDRAWAL. PLEASE NOTE: MEETINGS WHICH HAVE ALREADY TAKEN PLACE ARE GENERALLY NOT LISTED.]

Presidential documents During the past month, President Trump signed the following documents that relate to international trade or travel, regulatory reform, national security, law enforcement or related activities:

Date Subject

Proclamation 9771 of July 30, 2018 - To Take Certain Actions Under the Afri- 08-02-18 can Growth and Opportunity Act and for Other Purposes Executive Order 13846 of August 6, 2018 - Reimposing Certain Sanctions With 08-07-18 Respect to Iran Presidential Determination 2018-10 of July 20, 2018 - Continuation of U.S. 08-09-18 Drug Interdiction Assistance to the Government of Colombia Notice of August 8, 2018 - Continuation of the National Emergency With Re- 08-13-18 spect to Export Control Regulations 08-15-18 Proclamation 9772 – Adjusting Imports of Steel into the United States Proclamation 9776 Adjusting Imports of Aluminum into the United States 08-29-18 Proclamation 9777 Adjusting Imports of Steel into the United States

President notifies Congress of intent to sign trade agreement On August 31, 2018, USTR issued the following statement:

Today the President notified the Congress of his intent to sign a trade agreement with Mexico – and Canada, if it is willing – 90 days from now. The agreement is the most advanced and high-standard trade agreement in the world. Over the next few weeks,

International Trade Compliance Update | September 2018 7

Baker McKenzie

Congress and cleared advisors from civil society and the private sector will be able to examine the agreement. They will find it has huge benefits for our workers, farmers, ranchers, and businesses. We have also been negotiating with Canada throughout this year-long process. This week those meetings continued at all levels. The talks were constructive, and we made progress. Our officials are continuing to work toward agreement. The USTR team will meet with Minister Freeland and her colleagues Wednesday of next week.

President modifies proclamations on sec. 232 steel and aluminum tariffs to permit Commerce to grant additional relief on quotas On August 29, 2018, President Trump signed Proclamation 9777 Adjusting Im- ports of Steel into the United States and Proclamation 9776 Adjusting Imports of Aluminum into the United States, both published in the Federal Register on Sept. 4, 2018, which provide for exclusions from the steel and aluminum quantitative restrictions in certain cases. The provisions are set forth below: [Note: “CLAUSE” refers to the clause in the appropriate proclamation.]

CLAUSE (1) FOR STEEL AND ALUMINUM: The Secretary of Commerce is authorized, in consultation with the Secretary of State, the Secretary of the Treasury, the Secretary of Defense, the United States Trade Representative (USTR), the Assistant to the President for National Security Affairs, the Assistant to the President for Economic Policy, and such other senior Executive Branch officials as the Secretary deems appropriate, to provide relief from the quantitative limitations applicable to steel articles described in subheadings 9903.80.05 through 9903.80.58 of subchapter III of chapter 99 of the HTSUS and the quantitative limitations applicable to aluminum articles described in subheadings 9903.85.05 and 9903.85.06 of subchapter III of chapter 99 of the HTSUS for any steel or aluminum articles determined not to be produced in the United States in a sufficient and reasonably available amount or of a satisfactory quality, and to provide such relief based upon specific national security considerations. • Such relief shall be provided for a steel article only after a request for relief is made by a directly affected party located in the United States. • Such relief may be provided to directly affected parties on a party‑by‑party basis taking into account the regional availability of particular articles, the ability to transport articles within the United States, and any other factors as the Secretary deems appropriate. • If the Secretary determines that relief should be granted, the Secretary shall publicly post such determination and notify US Customs and Border Protection (CBP) so that it will be excluded from the applicable quantitative limitation. • Relief granted under this clause shall apply only to an article entered for consumption, or withdrawn from warehouse for consumption, on or after the date on which the request for relief is granted. • Until such time as any applicable quantitative limitation for a particular article has been reached, CBP shall count any steel or aluminum article for which relief is granted under this clause toward such quantitative limitation at the time when such steel article is entered for consumption or withdrawn from warehouse for consumption. • Any steel article for which relief is granted under this clause shall not be subject to the additional rate of duty set forth in Proclamation 9705, as amended. Steel articles for which relief is granted under this clause shall be subject to the duty treatment provided in subheading 9903.80.60 of subchapter III of chapter 99 of the HTSUS, as established by the Annex to Proclamation 9777. • Any aluminum article for which relief is granted under this clause shall not be subject to the additional rate of duty set forth in Proclamation 9704, as amended. Aluminum articles for which relief is granted under this clause shall be subject to the duty treatment provided in subheading 9903.85.11 of subchapter III of chapter 99 of the HTSUS, as established by the Annex to Proclamation 9776.

International Trade Compliance Update | September 2018 8

Baker McKenzie

CLAUSE (2) FOR STEEL ONLY: The Secretary shall, on an expedited basis, grant relief from the quantitative limitations set forth in Proclamation 9740 and Proclamation 9759 and their accompanying annexes for any steel article where • the party requesting relief entered into a written contract for production and shipment of such steel article before March 8, 2018; • such contract specifies the quantity of such steel article that is to be produced and shipped to the United States consistent with a schedule contained in such contract; • such steel article is to be used to construct a facility in the United States and such steel article cannot be procured from a supplier in the United States to meet the delivery schedule and specifications contained in such contract; • the payments made pursuant to such contract constitute 10 percent or less of the cost of the facility under construction; and • lack of relief from the quantitative limitations on such steel article would significantly disrupt or delay completion of the facility being constructed in the United States with the steel article specified in such contract. Until such time as any applicable quantitative limitation for a particular article has been reached, CBP shall count any steel article for which relief is granted under this clause toward such quantitative limitation at the time when such steel article is entered for consumption or withdrawn from warehouse for consumption. Any steel article for which relief is granted under this clause shall be subject to the additional rate of duty set forth in clause 2 of Proclamation 9705, as amended by this proclamation, when such steel article is entered for consumption or withdrawn from warehouse for consumption. This rate of duty is in addition to any other duties, fees, exactions, and charges applicable to such steel article. Any steel article provided relief under this clause must be entered for consumption, or withdrawn from warehouse for consumption, on or before March 31, 2019, and may not be granted further relief by the Secretary under clause 3 of Proclamation 9705, as amended. Steel articles for which relief is granted under this clause shall be subject to the duty treatment provided in subheading 9903.80.61 of subchapter III of chapter 99 of the HTSUS, as established by the Annex to this proclamation.

CLAUSE (3) FOR STEEL ONLY: The Secretary shall grant relief under clause 2 of this proclamation only upon receipt of a sworn statement signed by the chief executive officer and the chief legal officer of the party requesting relief. Such statement shall at- test that • the steel article for which relief is sought and the associated contract meet all of the criteria for relief set forth in clause 2 of this proclamation; • the party requesting relief will accurately report to CBP, in the manner that CBP prescribes, the quantity of steel articles entered for consumption, or withdrawn from warehouse for consumption, pursuant to any grant of relief; and • the quantity of steel articles entered pursuant to a grant of relief will not exceed the quantity specified in such contract for delivery on or before March 31, 2019. The Secretary shall notify CBP and publish a notice of relief for the quantity of steel articles specified in such contract that are scheduled for delivery on or before March 31, 2019. The Secretary shall revoke any grant of relief under clause 2 of this proclamation if the Secretary determines at any time after such grant that the criteria for relief have not been met and may, if the Secretary deems it appropriate, notify the At- torney General of the facts that led to such revocation.

CLAUSE (4) FOR STEEL AND CLAUSE (2) FOR ALUMINUM : As soon as practicable, the Sec- retary is required to issue procedures for the requests for exclusion described in clause 1 of either proclamation. CBP shall implement exclusions granted pursuant to clause 1 of either proclamation or relief provided under clause 2 of the steel proclamation as soon as practicable.

CLAUSE (5) FOR STEEL AND CLAUSE 3 FOR ALUMINUM: Clause 3 of Proclamation 9705 [for steel or Proclamation 9704 for aluminum], as amended by Proclamation 9711 [for

International Trade Compliance Update | September 2018 9

Baker McKenzie

steel or 9710 for aluminum], is further amended by striking the fourth and fifth sentences and inserting in lieu thereof the following two sentences: “If the Secretary determines that a particular steel [or aluminum] article should be excluded, the Secretary shall publicly post such determination and notify U.S. Customs and Border Protection (CBP) of the Department of Homeland Security concerning such article so that it will be excluded from the duties described in clause 2 of this proclamation. For merchandise entered for consumption, or withdrawn from warehouse for consumption, on or after the date the duty established under this proclamation is effective and with respect to which liquidation is not final, such relief shall be retroactive to the date the request for relief was ac- cepted by the Department of Commerce.”.

CLAUSE (6) FOR STEEL: In order to establish the duty rate on imports of steel articles for which relief is granted under clause 2 of this proclamation, clause 2 of Proclamation 9705, as amended, is further amended by striking the last sentence and inserting in lieu thereof the following two sentences: “All steel articles imports covered by subheading 9903.80.61, in subchapter III of chapter 99 of the HTSUS, shall be subject to the additional 25 percent ad valorem rate of duty established herein with respect to goods entered for consumption, or withdrawn from warehouse for consumption, on or after 12:01 a.m. eastern daylight time on the date specified in a determination by the Secretary granting relief. These rates of duty, which are in addition to any other duties, fees, exactions, and charges applicable to such imported steel articles, shall apply to imports of steel articles from each country as specified in the preceding three sentences.”.

CLAUSE (7) FOR STEEL AND CLAUSE (4) FOR ALUMINUM: Where the government of a country identified in the superior text to subheadings 9903.80.05 through 9903.80.58 [for steel or 9903.85.05 and 9903.85.06 for aluminum] of subchapter III of chapter 99 of the HTSUS notifies the United States that it has established a mechanism for the certification of exports to the United States of products covered by the quantitative limitations applicable to these subheadings, and where such mechanism meets the operational requirements for participation in an export certification system adminis- tered by the United States, CBP, in consultation with the Secretary, USTR, and other relevant executive departments and agencies, may require that importers of these products furnish relevant export certification information in order to qualify for the treatment set forth in subheadings 9903.80.05 through 9903.80.58 [for steel or 9903.85.05 and 9903.85.06 for aluminum]. Where CBP adopts such a requirement, it shall publish in the Federal Register notice of the requirement and procedures for the submission of relevant export certification information. No article that is subject to the export certification requirement announced in such notice may be entered for consumption, or withdrawn from warehouse for consumption, on or after the effective date specified in such notice, except upon presentation of a valid and properly executed certification, in accordance with the procedures set forth in the notice.

CLAUSE (8) FOR STEEL OR CLAUSE (5) FOR ALUMINUM: Subdivision (c) of U.S. note 16 [19 for aluminum] to subchapter III of chapter 99 of the HTSUS is amended by inserting at the end the following new sentence: “Pursuant to subheadings 9903.80.60 and 9903.80.61 [9903.85.11 for aluminum] and superior text thereto, the Secretary may provide that any excluded product shall be granted entry into the customs territory of the United States when the applicable quantitative limitation has filled for the specified period for such good.”.

CLAUSE (9) FOR STEEL AND CLAUSE (6) FOR ALUMINUM: Subdivision (d) of U.S. note 16 [19 for aluminum] to subchapter III of chapter 99 of the HTSUS is amended by inserting after “9903.80.58” the phrase “and 9903.80.60 and 9903.80.61” [or for aluminum inserting after ‘‘9903.85.06’’ the phrase ‘‘and 9903.85.11’’].

CLAUSE (10) FOR STEEL: The rate of duty specified in the HTSUS in the general column for heading 9903.80.01 is amended by striking “25%” and inserting in lieu thereof: “The duty provided in the applicable subheading + 25%”.

International Trade Compliance Update | September 2018 10

Baker McKenzie

CLAUSE (11) FOR STEEL: The rate of duty specified in the HTSUS in the general column for heading 9903.80.02 is amended by striking “50%” and inserting in lieu thereof: “The duty provided in the applicable subheading + 50%”.

CLAUSE (12) FOR STEEL: The superior text for subheadings 9903.80.05 through 9903.80.58 of the HTSUS is amended by deleting “Iron” and inserting in lieu thereof: “Except as provided in subheadings 9903.80.60 and 9903.80.61, iron”.

CLAUSE (7) FOR ALUMINUM: The superior text for subheadings 9903.85.05 and 9903.85.06 of the HTSUS is amended by deleting “Aluminum” and inserting in lieu thereof: “Except as provided in subheading 9903.85.11, aluminum”.

CLAUSE (13) FOR STEEL AND CLAUSE 8 FOR ALUMINUM: To implement clauses 1 and 2 [clause 1 for aluminum] of this proclamation, subchapter III of chapter 99 of the HTSUS is modified as provided in the Annex to the proclamation.

CLAUSE (14) FOR STEEL AND CLAUSE (9) FOR ALUMINUM: The modifications to the HTSUS made by clauses 8 through 13 [5 through 8 for aluminum]of this proclamation and the Annex to this proclamation shall be effective with respect to goods entered for consumption, or withdrawn from warehouse for consumption, on or after 12:01 a.m. eastern daylight time on August 30, 2018, and shall continue in effect, unless such actions are expressly reduced, modified, or terminated.

CLAUSE (15) FOR STEEL AND CLAUSE (10) FOR ALUMINUM: Clause 5 of Proclamation 9705 [9704 for aluminum] is amended by inserting “for consumption” after “goods entered” in the first sentence. Clause 5 of Proclamation 9711 [9739 for aluminum], as amended, is amended by striking “by this proclamation” from the end of the second sentence. Clause 6 of Proclamation 9740 [clause 5 of Proclamation 9739 for aluminum] is amended by striking “by clause 1 of this proclamation”. The Proclamations each authorize revisions to the HTSUS so that it conforms to the amendments directed by the proclamations and to publish any such modification to the HTSUS in the Federal Register.

Both proclamations state that any provisions of previous proclamations and Ex- ecutive Orders that are inconsistent with the actions taken in these two proclamations are superseded to the extent of such inconsistency.

President announces preliminary agreement with Mexico on trade On August 27, 2018, President Trump announced that the US and Mexico have reached a preliminary agreement on a new trade agreement.

In a meeting with reporters from the Oval Office, and President Enrique Pena Nieto of Mexico on the phone, President Trump announced that the two countries have reached an agreement on new trade agreement. According to the Presi- dent, this agreement will be called the “US-Mexico Trade Agreement” and it will replace NAFTA (which, the President said had “bad connotations because it was such a bad deal for the United States”). The Administration intends to notify Congress this coming Friday of its attention to sign this new trade agreement (the Administration is required to notify Congress at least 90 days before signing any trade deal and President Nieto leaves office November 30th, which is ~90 days from Friday, so they are trying to get this in under the wire).

As for Canada, the two presidents seemed to express different views. President Trump said that negotiations with Canada had not started yet, but would be begin shortly. He also suggested that they would be short – saying that if Canada wants to negotiate fairly, we will do that; but that, if not, the United States will just impose a duty on Canadian-made automobiles (presumably under the on-going Section 232 investigation). He also said that any deal could be a separate deal, or it could be integrated in to the new U.S.-Mexico trade agreement. President Pena repeated stated that Mexico’s intention was to have a trilateral agreement

International Trade Compliance Update | September 2018 11

Baker McKenzie

that included Canada (not two separate bilateral deals, as seems to President Trump’s preference).

The fact sheets put out by the USTR on the U.S.-Mexico Trade Agreement are available here. A video of the meeting in the Oval Office is available on C- SPAN’s website.

While this is a momentous development, there are a few things to keep in mind. First, the United States (and possibly Mexico?) appears to be willing to move forward without Canada. It seems increasingly likely that President Trump intends to use his leverage (over autos, in particular) to present Canada with a ‘take it or leave it’ offer. If Canada is not willing to accept President Trump’s terms, it is not clear whether Mexico would be willing to forego an agreement with the United States (that seems less likely based on today’s meeting). Second, this process is far from over. As mentioned above, the United States and Mexico are racing against a political deadline (when President Nieto leaves office No- vember 30th), but that is not the only political consideration. The U.S. political process/deadlines will also come into play, as mentioned in our previous updates. It is not clear whether a renegotiated agreement can be finalized and rati- fied in the time available. Nevertheless, all companies will meaningful NAFTA- related investment should be considering how today’s announcement is likely to impact their business and begin planning accordingly.

If you have any questions, please contact Ted Murphy or any member of the Customs group with whom you normally work.

President proclaims increase in tariffs for steel from Turkey On August 10, 2018, President Trump signed Proclamation 9772 - Adjusting Im- ports of Steel Into the United States (published in the Federal Register on August 15, 2018), which increases the section 232 tariffs on Turkish Steel to 50%. In the proclamation, it is stated that

In the [Commerce] Secretary’s January 2018 report, the Secretary recommended that I consider applying a higher tariff to a list of specific countries should I determine that all countries should not be subject to the same tariff. One of the countries on that list was the Republic of Turkey (Turkey). As the Secretary explained in that report, Tur- key is among the major exporters of steel to the United States for domestic consumption. To further reduce imports of steel articles and increase domestic capacity utili- zation, I have determined that it is necessary and appropriate to impose a 50 percent ad valorem tariff on steel articles imported from Turkey, beginning on August 13, 2018. The Secretary has advised me that this adjustment will be a significant step toward ensuring the viability of the domestic steel industry.

The proclamation modifies subchapter III of chapter 99 of the HTSUS as provided for in the Annex to the proclamation to impose a 50 percent ad valorem rate of duty with respect to the designated Turkish steel articles entered for consumption, or withdrawn from warehouse for consumption, on or after 12:01 a.m. eastern daylight time on August 13, 2018. The duty is in addition to any other duties, fees, exactions, and charges applicable to the designated Turkish steel articles. On or after 12:01 on August 13, Turkish steel imports will use “9903.80.02 (50% ad valorem duty rate for products of iron and steel that are the product of Tur- key)” in addition to the regular tariff subheadings for affected products.

International Trade Compliance Update | September 2018 12

Baker McKenzie President continues national emergency with respect to Export Control Regulations On August 13, 2018, the Federal Register published Presidential Notice of Au- gust 8, 2018 - Continuation of the National Emergency With Respect to Export Control Regulations which continues for an additional year the national emergency established on August 17, 2001 in Executive Order (EO) 13222, as amended by EO 13637 (of March 8, 2018), with respect to the unusual and extraordinary threat to the national security, foreign policy, and economy of the United States related to the expiration of the Export Administration Act of 1979, as amended (50 U.S.C. 4601 et seq.). The national emergency is being extended because the Congress has not renewed the Export Administration Act.

President signs the Foreign Investment Risk Review Modernization Act, most important reforms to CFIUS in thirty years On Monday August 13, 2018, President Trump signed into law the “John S. McCain National Defense Authorization Act for Fiscal Year 2019 (NDAA). The Foreign Investment Risk Review Modernization Act of 2018 (FIRRMA; sections 1701-1728 of the NDAA) contains the most significant changes to the law governing the Committee on Foreign Investment in the United States (CFIUS or Committee) since the creation of the US foreign investment regime in 1988. Alt- hough prompted primarily by national security concerns with Chinese investments, the legislation will affect investments by all foreign investors. The changes reflect a trend across advanced markets for greater scrutiny of inbound investments.

While Congress declares that the United States continues to welcome investments from abroad, FIRRMA grants the administration new tools to regulate foreign direct investments raising national security concerns. FIRRMA will expand the jurisdiction of CFIUS to scrutinize inbound investments, and will create for the first time mandatory declaration requirements for foreign government affiliated investors and for other investments designated by CFIUS. The law makes a series of other changes that strengthen CFIUS’s authority, delegates broad rulemaking authority to the Committee, and authorizes the sharing of information on transactions with allied governments for the first time.

The enactment of FIRRMA will launch a major rule-making process at the same time that CFIUS agencies must undertake a significant expansion of staff. While extended timelines for the CFIUS review process will enter into force immediately, most FIRRMA provisions will phase in only after the issuance of regulations and expansion of staff, processes that will likely take over a year. Meanwhile, the administration will initiate a related regulatory process of classifying and imposing licensing requirements for exports of “emerging” and “foundational” technologies. This effort could affect cross-border transactions more broadly, including outbound investments from the United States.

Expanded Jurisdiction

While CFIUS previously had broad authority to review investments through which a foreign person could assume control of a US business, the new law grants CFIUS the authority to review:

Non-passive foreign investments: A non-passive foreign investment in a company that (1) owns, operates, manufactures, supplies or services critical infrastructure, (2) produces, designs, tests, manufactures, fabricates, or de-

International Trade Compliance Update | September 2018 13

Baker McKenzie

velops critical technologies, or (3) maintains or collects sensitive personal data of US citizens. “Non-passive” investments are those that provide any position on the board of directors including observer rights, a role in substantive decision-making, or access to “material non-public technical information,” with certain exemptions for investment funds.

Real estate: The purchase, lease, or concession by or to foreign persons of real estate that is located within port, or is proximate to a “sensitive” US government property. Previously, CFIUS did not have jurisdiction to review acquisitions of real estate that was not associated with commercial activities.

Declarations — Mandatory and Voluntary

FIRRMA imposes a new declaration procedure in addition to the existing notification procedure. Declarations, whether voluntary or mandatory, will be short (about five pages). After receiving a declaration, CFIUS will have 30 days either to approve the transaction or to require a full CFIUS review.

Declarations will be mandatory for investments by foreign persons in which a foreign government has a “substantial interest.” There will be a possibility of waiving the required declaration where the foreign investor has a record of compliance and cooperation with the US government. In addition, CFIUS will issue regulations imposing mandatory declarations on investments in other businesses, likely including those involved in critical infrastructure, critical technology, and handling of sensitive personal data of US citizens.

Parties will also have the option of submitting voluntary declarations where they desire the legal certainty of an approval through the expedited procedure.

Other Changes

FIRRMA amends the CFIUS process in a number of other ways. In terms of timing, FIRRMA extends the initial review period from 30 to 45 days, and adds a possible 15 day extension to the investigations phase (i.e., an investigation phase may take up to 60 days). FIRRMA also clarifies CFIUS’s authority to block transactions or impose conditions during a review process or when parties withdraw.

For the first time, CFIUS will be authorized to collect a filing fee. The fees will be determined by regulation, and will be based on the value of the transaction — they will be capped at the lesser of 1 percent of the value of the transaction, or $300,000.

Of broader importance, FIRRMA authorizes CFIUS to disclose to a US ally or partner information arising from a CFIUS process in order to advance the common national security interests of the United States and that other government. This new authority will facilitate greater cooperation between regulators in the United States and partner countries.

Export Controls

As part of the compromise to secure FIRRMA’s passage, Congress reauthorized and expanded the US export control law. The export control legislation (sections 1741-1768 of the NDAA) requires the administration to identify “emerging” and “foundational” technologies, and to impose licenses on exports to China and cer-

International Trade Compliance Update | September 2018 14

Baker McKenzie

tain other countries. This classification process is expected to occur over the coming months, a process that the President foreshadowed when he directed his administration in June to assess US export controls of “critical technologies” and to work with allies to support “efforts to combat harmful technology transfer and intellectual property theft.” This new regulatory mandate could have, like FIRRMA with its focus on the transfer of national security relevant technologies, significant impacts on cross-border transactions.

For additional information, please contact the original authors, Rod Hunter, Syl- wia Lis, Daniel Andreeff and Callie Lefevre.

President issues Proclamation 9771, suspending Rwanda from AGOA duty-free benefits and modifying the HTS On August 2, 2018, the Federal Register published Proclamation 9771 of July 30, 2018 - To Take Certain Actions Under the African Growth and Opportunity Act and for Other Purposes. The Proclamation:

• Suspends the application of duty-free treatment for Rwanda as the President determined that Rwanda is not meeting the statutory requirements, and modifies notes and subheadings to subchapter XIX of chapter 98 of the Harmonized Sys- tem of the United States (HTS), accordingly. These changes shall be effective with respect to goods entered for consumption, or withdrawn from warehouse for consumption, on or after July 31, 2018 (Annex I). • Implements changes to the US-Bahrain Free Trade Agreement (USBFTA) Rules of Origin (HTS General Note 30) that the Parties to the FTA agreed to in a protocol to the USBFTA that went into effect on November 30, 2017 to conform to changes in the tariff schedules of both countries as a result of Harmonized Sys- tem revisions. These changes shall be effective with respect to goods entered for consumption, or withdrawn from warehouse for consumption, on or after the date that is 30 days after the date of publication of the proclamation in the Federal Register (Annex II). • Modifies the HTS In order to conform the HTS to the most recent amendments to the Harmonized System Convention. These modifications to the HTS shall be effective with respect to goods entered for consumption, or withdrawn from warehouse for consumption, on or after the later of (i) the date that is 30 days after the date of publication of the proclamation in the Federal Register, or (ii) the first day of the month that follows after such thirtieth day (Annex III). • Modifies the HTS in order to correct technical errors in the annex to Proc- lamation 9693, Note 18(c)(iii) in subchapter III of chapter 99 of the HTS, by deleting the phrase “Subheadings 9903.45.21 and 9903.45.22 shall likewise” and by inserting in lieu thereof the phrase “Subheading 9903.45.25 shall”; and Note 18(g) is modified by deleting “For purposes of” and by inserting in lieu thereof “Subject to the provisions of subdivision (c)(iii) of this note, for purposes of”.

State extends US Passport ban for travel to N. Korea (DPRK) On August 31, 2018, the Department of State published in the Federal Register a notice [Public Notice: 10527] extending until August 31, 2019 (unless extended or sooner revoked) a declaration made on September 1, 2017 that all United States passports were invalid for travel to, in, or through the Democratic People's Republic of Korea (DPRK) unless specially validated for such travel.

State determines Russia used chemical weapons On August 27, 2018, the Department of State published in the Federal Register a notice [Public Notice: 10519] of new sanctions on Russia under the Chemical

International Trade Compliance Update | September 2018 15

Baker McKenzie

and Biological Weapons Control and Warfare Elimination Act of 1991 (the “CBW Act”) after determining that the Russian Government has used chemical weapons in violation of international law or chemical or biological weapons against its own nationals. The imposition of CBW Act sanctions follows reports of the use of a “Novichok” nerve agent in an attempt to assassinate UK citizen Sergei Skripal and his daughter Yulia Skripal. There is no indication in the notice regarding the potential for significant additional sanctions (e.g., an export ban, an import ban, an air transportation ban) to be imposed in three months time, as previously described here.

The CBW Act sanctions are effective upon their publication in the Federal Regis- ter on August 27, 2018, and will be in place for at least one year. (Their imposition has been delayed from the original date provided by the State Department of August 22, 2018.) Certain waivers of the CBW Act sanctions apply, as further described below.

The following CBW Act sanctions and related waivers will take effect as of Au- gust 27, 2018:

1. Waiver of Sanctions Imposed on Foreign Assistance: Though termination of foreign assistance to Russia (except for urgent humanitarian assistance and food or other agricultural commodities) was announced, the State Department has cho- sen to waive the imposition of such sanctions in the interests of national security. 2. Termination of Arms Sales Except in Furtherance of Space Program: The State Department announced the termination of (a) sales to Russia of defense articles, defense services, or design and construction services subject to the jurisdiction of the International Traffic in Arms Regulations (“ITAR”), and (b) licenses for the export to Russia of any item on the ITAR’s United States Munitions List. Howev- er, in furtherance of national security, the State Department has waived these sanctions with respect to the issuance of licenses in support of government space cooperation and commercial space launches. Licenses for such items and activities will be issued on a case-by-case basis consistent with the export licensing policy for Russia that was in effect prior to the enactment of the CBW Act sanctions. 3. Termination of Arms Sales Financing: All foreign military financing for Russia is terminated. 4. Denial of United States Government Credit or Other Financial Assistance: Any credit, credit guarantees, or other financial assistance by any department, agency, or instrumentality of the US Government is denied, including by the Export- Import Bank of the United States. 5. Prohibition on Exports of Goods and Technology Subject to National Security Controls Subject to Certain Waivers: All exports and reexports to Russia of goods and technology subject to National Security (“NS”) controls on the Com- merce Control List (“CCL”) contained in Supplement No. 4 to Part 774 of the Ex- port Administration Regulations (15 C.F.R. Part 730 et seq., “EAR”) are prohibited, except for certain exports or reexports that are waived for national security reasons, as follows: a. License Exceptions: Exports or reexports made pursuant to certain EAR license exceptions contained in EAR Part 740 are allowed, including but not limited to exports or reexports under License Exception ENC, which applies to certain encryption-related items. A full list of the License Exceptions is available in the notice. Each license exception is subject to certain conditions, and we would therefore suggest an exporter review the license exceptions in detail before rely- ing on any one exception to export or reexport to Russia a good or technology subject to NS controls. b. Certain Exports/Reexports Under New Licenses Allowed: The following exports and reexports of goods and technology controlled for NS reasons are al-

International Trade Compliance Update | September 2018 16

Baker McKenzie

lowed provided they are pursuant to a “new” license. We interpret this reference to “new” licenses to mean that this waiver applies only to licenses issued after the enactment of the CBW Act sanctions (i.e., issued after August 24, 2018); however, the State Department has not issued guidance on this point thus far. Such “new” licenses will be issued on a case-by-case basis consistent with the export licensing policy for Russia that was in effect prior to the enactment of the CBW Act sanctions. 1. Exports and reexports necessary for flight safety of civil fixed-wing passenger aviation. 2. Exports and reexports for deemed exports and reexports to Russian nationals. 3. Exports and reexports to wholly-owned Russian subsidiaries of US companies. 4. Exports and reexports in support of government space cooperation and commercial space launches. 5. Exports and reexports for commercial end-users and civil end-uses in Rus- sia. c. Exports/Reexports to SOEs or SFEs Denied: Separately, license applications for new licenses to export NS-controlled goods or technology to Russian state- owned or state-funded enterprises will be reviewed on a case-by-case basis, subject to a “presumption of denial” policy.

For additional information, please contact one of the authors, Nicholas F. Cow- ard, Hannah N. Zarkar or Meghan Hamilton, or any member of the US Outbound rade group with whom you usually work..

US requests WTO to allow retaliation against Indonesia On August 2, 2018, the United States delegation to the WTO notified the WTO Dispute Settlement Body (DSB) that The United States considers that Indonesia has failed to comply with the recommendations and rulings of the DSB in the dispute Indonesia — Importation of Horticultural Products, Animals, and Animal Products (DS478). Pursuant to Article 22.2 of the Understanding on Rules and Procedures Governing the Settlement of Disputes (DSU), the United States requested authorization from the DSB to suspend concessions or other obligations with respect to Indonesia at an annual level based on a formula commensurate with the trade effects caused to the interests of the United States by the failure of Indonesia to comply with the recommendations of the DSB. Based on a preliminary analysis of available data for certain products, this level is provisionally es- timated at up to approximately $350 million for 2017. The United States said it would update this figure annually, as Indonesia's economy continues to expand.

On 22 November 2017, the DSB adopted the reports contained in WT/DS478/R and WT/DS478/AB/R, finding that Indonesia's measures on horticultural products, animal, and animal products breached Article XI:1 of the General Agreement on Tariffs and Trade (“GATT 1994”) . Accordingly, the DSB recommended that Indonesia bring its measures into conformity with its obligations under the GATT 1994. The United States and Indonesia agreed that the reasonable period of time for Indo- nesia to implement the DSB's recommendations would expire on 22 July 2018. In the view of the United States, Indonesia failed to bring its measures into compliance with its obligations under the GATT 1994 within that period. The parties have not reached agreement on compensation. Therefore, the United States is entitled to authorization by the DSB to take countermeasures under Article 22 of the DSU. In considering what countermeasures to take, the United States follows the principles and procedures set forth in Article 22.3 of the DSU. The countermeasures would con- sist of suspension of tariff concessions and related obligations (including most-

International Trade Compliance Update | September 2018 17

Baker McKenzie

favored-nation obligations) under the GATT 1994 on a list of products of Indonesia to be drawn from the Harmonized Tariff Schedule of the United States.

USTR releases fact sheets on NAFTA negotiations with Mexico On August 27, 2018, the US Trade Representative (USTR) announced that the United States and Mexico had reached a preliminary agreement in principle, subject to finalization and implementation, USTR released three Fact Sheets. One is entitled: United States–Mexico Trade Fact Sheet: Rebalancing NAFTA to Sup- port Manufacturing. It states that United States and Mexico have reached an agreement that supports North American manufacturing and mutually beneficial trade. According to the announcement, the new agreement will create more bal- anced, reciprocal trade that supports high-paying jobs for Americans and grows the United States and Mexican economies. The following information was released in the Fact Sheet:

Key Achievement: Increasing Regional Value Content Rule This deal encourages United States manufacturing and regional economic growth by requiring that 75 percent of auto content be made in the United States and Mexico. The rules will: • Incentivize billions annually in additional United States vehicle and auto parts production. • Help to preserve and re-shore vehicle and parts production in the United States. • Transform supply chains to use more United States content, especially content that is key to future automobile production and high-paying jobs. • Close gaps in the current NAFTA agreement that incentivized low wages in automobile and parts production. Key Achievement: Creating New Labor Value Content Rule This deal uses trade rules to drive higher wages by requiring that 40-45 percent of au- to content be made by workers earning at least $16 per hour. The rules will: • Support better jobs for United States producers and workers by requiring that a significant portion of vehicle content be made with high-wage labor. • Ensure that United States producers and workers are able to compete on an even playing field, and incentivize new vehicle and parts investments in the United States. • Encourage more investment by auto companies in research and development in the region. Key Achievement: Exceeding NAFTA 1.0 and TPP Standards with Stronger Rules of Origin and Enforcement The United States and Mexico have agreed to stronger rules of origin that exceed those of both NAFTA 1.0 and the Trans-Pacific Partnership (TPP), including for autos and automobile parts and other industrial products such as chemicals, steel-intensive products, glass, and optical fiber. This deal exceeds NAFTA 1.0 and the TPP by establishing procedures that stream- line certification and verification of rules of origin and that promote strong enforcement. This includes new cooperation and enforcement provisions that help to prevent duty evasion before it happens. The new rules will help ensure that only producers using sufficient and significant United States and Mexican parts and materials receive preferential tariff benefits.

International Trade Compliance Update | September 2018 18

Baker McKenzie

GOODS MARKET ACCESS New commitments have been included in the Market Access chapter to reflect developments in United States trade agreements that address non-tariff barriers related to trade in remanufactured goods, import licensing, and export licensing. Key Achievement: Exceeding NAFTA 1.0 and TPP Standards to More Effectively Support Trade in Manufactured Goods The new Market Access chapter will more effectively support trade in manufactured goods between the United States and Mexico by removing provisions that are no longer relevant, updating key references, and affirming commitments that have phased in from the original agreement. Specifically, the Market Access chapter: • Maintains duty-free treatment for originating goods. • Maintains the prohibition on export duties, taxes, and other charges and the waiver of specific customs processing fees. • Adds new provisions for transparency in import licensing and export licensing procedures. • Prohibits Parties from applying: (a) requirements to use local distributors for importation; (b) restrictions on the importation of commercial goods that contain cryptography; (c) import restrictions on used goods to remanufactured goods; and (d) requirements for consular transactions and their associated fees and charges. • Updates provisions for duty-free temporary admission of goods to cover shipping containers or other substantial holders used in the shipment of goods. TEXTILES The new provisions on textiles incentivize greater United States and Mexican production in textiles and apparel trade, strengthen customs enforcement, and facilitate broader consultation and cooperation among the Parties on issues related to textiles and apparel trade. Key Achievement: Strengthening Supply Chains to Provide New Market Opportunities for the Textile and Apparel Sector The provisions will: • Promote greater use of Made-in-the-USA fibers, yarns, and fabrics by:

o Limiting rules that allow for some use of non-NAFTA inputs in textile and apparel trade.

o Requiring that sewing thread, pocketing fabric, narrow elastic bands, and coated fabric, when incorporated in apparel and other finished products, be made in the region for those finished products to qualify for trade benefits. • Establish a Textiles chapter for United States–Mexico trade, including textile- specific verification and customs cooperation provisions that provide new tools for strengthening customs enforcement and preventing fraud and circumvention in this important sector. The new Textiles chapter provisions are stronger than those in NAFTA 1.0 with respect to both enforcement and incentivizing North American production of textiles.

International Trade Compliance Update | September 2018 19

Baker McKenzie

SECTORAL ANNEXES The United States and Mexico have also reached agreement on new provisions covering trade in specific manufacturing sectors, including Information and Communica- tion Technology, Pharmaceuticals, Medical Devices, Cosmetic Products, and Chemi- cal Substances. Each of the annexes includes provisions that exceed NAFTA 1.0 and TPP that promote enhanced regulatory compatibility, best regulatory practices, and increased trade between both countries. Additional Fact Sheets were issued at the same time:

• UNITED STATES–MEXICO TRADE FACT SHEET: Strengthening NAFTA for Agriculture • UNITED STATES–MEXICO TRADE FACT SHEET: Modernizing NAFTA to be a 21st Century Trade Agreement

USTR requests comments to compile the National Trade Estimate Report on Foreign Trade Barriers

On August 24, 2018, the Office of the US Trade Representative (USTR) published in the Federal Register a notice [Docket Number USTR-2018-0029] in which the Trade Policy Staff Committee (TPSC) invites interested persons to submit written comments to assist the TPSC in identifying significant barriers to U.S. exports of goods and services, U.S. foreign direct investment, and the protection and enforcement of intellectual property rights for inclusion in the annual National Trade Estimate Report on Foreign Trade Barriers (NTE Report). USTR also will consider responses to this notice as part of the annual review of the operation and effectiveness of all U.S. trade agreements regarding telecommunications products and services that are in force with respect to the United States.

USTR must receive all written comments no later than 11:59 pm on October 30, 2018.

USTR requests comments on China’s compliance with its WTO commitments On August 24, 2018, the Office of the US Trade Representative (USTR) published in the Federal Register a notice of public hearing and request for comments [Docket Number USTR-2018-0030] to assist the Office of the USTR in the preparation of its annual report to the Congress on China’s compliance with the commitments made in connection with its accession to the World Trade Organi- zation (WTO).

The deadline for submission of comments, and requests to appear and summaries of testimony at the October 3, 2018 public hearing is September 19, 2018 at midnight EDT. The Trade Policy Staff Committee (TPSC) will convene a public hearing in Rooms 1 and 2, 1724 F Street NW, Washington DC 20508, beginning at 9:30 am on October 3, 2018.

USTR publishes Notice of Action pursuant to section 301: new round of 25% tariffs on Chinese goods to start August 23 On August 16, 2018, the Office of the US Trade Representative (USTR) published in the Federal Register a notice of action pursuant to section 301 regarding China’s Acts, Policies, and Practices Related to Technology Transfer, Intel- lectual Property, and Innovation and has determined that appropriate action in this investigation includes the imposition of an additional ad valorem duty of 25 percent on products from China classified in the subheadings of the Harmonized

International Trade Compliance Update | September 2018 20

Baker McKenzie

Tariff Schedule of the United States (HTSUS) set out in Annex A of the notice. USTR has further determined to establish a process by which US stakeholders may request that particular products classified within a covered tariff subheading in Annex A be excluded from these additional duties. The additional duties set out in Annex A to this notice are effective with respect to products that are entered for consumption, or withdrawn from warehouse for consumption, on or after August 23, 2018.

The notice of action adds a new a new subheading 9903.88.02 and revises subchapter III to add a new US Note 20(c) that makes goods listed in the new 20(d) subject to the additional 25% duty, and sets forth the rules for the exceptions that apply. Of note is the revised treatment of goods subject to chapter 98. The additional duties imposed by heading 9903.88.02 do not apply to goods for which entry is properly claimed under a provision of chapter 98 of the HTSUS, except for goods entered under subheadings 9802.00.40, 9802.00.50, and 9802.00.60, and heading 9802.00.80. For subheadings 9802.00.40, 9802.00.50, and 9802.00.60, the additional duties apply to the value of repairs, alterations, or processing performed abroad, as described in the applicable subheading. For heading 9802.00.80, the additional duties apply to the value of the article less the cost or value of such products of the United States, as described in heading 9802.00.80. Under the original action that went into effect on July 9, the rates of duty imposed by heading 9903.88.01 did not apply to any products for which entry was properly claimed under a heading or subheading in chapter 98. However, that is also being changed.

U.S. note 20(a) to subchapter Ill of chapter 99 of the HTSUS which applies to the first group of Chinese goods subject to the 25% duty, is modified:

• by deleting: “Products of China that are classified in the subheadings enumerated in U.S. note 20(b) to subchapter Ill and that are eligible for special tariff treatment under general note 3(c)(i) to the HTSUS”; and • by inserting in lieu thereof: “Products of China that are classified in the subheadings enumerated in U.S. note 20(b) to subchapter Ill and that are eligible for special tariff treatment under general note 3(c)(i) to the tariff schedule, or that are eligible for temporary duty exemptions or reductions under subchapter II to chapter 99,”. • by deleting: “The rates of duty imposed by heading 9903.88.01 shall not apply to products for which entry is properly claimed under a heading or subheading in chapter 98.”; and • by inserting in lieu thereof: “The additional duties imposed by heading 9903.88.01 do not apply to goods for which entry is properly claimed under a provision of chapter 98 of the HTSUS, except for goods entered subheadings 9802.00.40, 9802.00.50, and 9802.00.60, and heading 9802.00.80. For subheadings 9802.00.40, 9802.00.50, and 9802.00.60, the additional duties apply to the value of repairs, alterations, or processing performed abroad, as described in the applicable subheading. For heading 9802.00.80, the additional duties apply to the value of the article less the cost or value of such products of the United States, as described in heading 9802.00.80.”

Any product listed in Annex A to the notice, except any product that is eligible for admission under ‘domestic status’ as defined in 19 C.F.R. 146.43, which is subject to the additional duty imposed by this determination, and is admitted into a US foreign trade zone on or after 12:01 a.m. Eastern daylight time on August 23, 2018, only may be admitted as ‘privileged foreign status’ as defined in 19 C.F.R. 146.41. Such products will be subject upon entry for consumption to any ad val-

International Trade Compliance Update | September 2018 21

Baker McKenzie

orem rates of duty or quantitative limitations related to the classification under the applicable HTSUS subheading.

USTR issues notice regarding the initiation of country practice review of Turkey (GSP) On August 16, 2018, the Office of the US Trade Representative (USTR) published in the Federal Register an announcement of the initiation of a country practice review of the eligibility of Turkey for benefits under the GSP program and notice of a public hearing and request for comments [Docket No. USTR- 2018-0031]. This review will focus on whether Turkey is meeting the GSP eligibility criterion that requires a GSP beneficiary country to assure the United States that it will provide equitable and reasonable access to its market. This notice includes the schedule for submission of public comments and a public hearing.

The deadline for submission of comments, pre-hearing briefs, and requests to appear at the September 26, 2018 public hearing is September 12, 2018 at midnight EDT. The GSP Subcommittee of the Trade Policy Staff Committee (TPSC) will convene a public hearing on the GSP country practice review of Turkey in Rooms 1 and 2, 1724 F Street NW, Washington DC 20508, beginning at 10:00 am on September 26, 2018. The deadline for submission of post-hearing briefs is October 17, 2018 at midnight EDT.

USTR seeks comments for 2018 Special 301 Out-of-Cycle Review of Notorious Markets On August 16, 2018, the Office of the US Trade Representative (USTR) published in the Federal Register a request for written comments [Docket No. USTR- 2018-0027] that identify online and physical markets based outside the United States that should be included in the 2018 Notorious Markets List (List). Con- ducted under the auspices of the Special 301 program, the List identifies online and physical marketplaces that reportedly engage in and facilitate substantial copyright piracy and trademark counterfeiting. In 2010, USTR began publishing the Notorious Markets List separately from the annual Special 301 Report as an “Out-of-Cycle Review.”

Deadline for submission of written comments: October 1, 2018 at midnight EST. Deadline for submission of rebuttal comments and other information USTR should consider during the review: October 15, 2018 at midnight EST.

USTR requests comments on Russia’s implementation of its WTO commitments On August 14, 2018, the Office of the US Trade Representative (USTR) published in the Federal Register a request for comments and notice of public hearing [Docket No. USTR–2018–0028] by the interagency Trade Policy Staff Com- mittee (TPSC) to assist the Office of the USTR in the preparation of its annual report to Congress on Russia’s implementation of its obligations as a Member of the World Trade Organization (WTO). See the Federal Register notice for requested information.

Deadline for submission of written comments and for filing requests to appear and a summary of expected testimony at the public hearing: September 25, 2018 at midnight EST.

International Trade Compliance Update | September 2018 22

Baker McKenzie

The TPSC will convene a public hearing in Rooms 1 & 2, 1724 F Street NW, Washington, DC 20508 beginning at 9:30 a.m. on October 4, 2018.

USTR finalizes second tranche of tariffs on Chinese goods On August 7, 2018, the US Trade Representative (USTR) announced the release of a list of approximately $16 billion worth of imports from China that will be subject to a 25 percent additional tariff as part of the US response to China’s unfair trade practices related to the forced transfer of American technology and intellectual property. This second tranche of additional tariffs under Section 301 follows the first tranche of tariffs on approximately $34 billion of imports from China, which went into effect on July 6.

The list contains 279 of the original 284 tariff lines that were on a proposed list announced on June 15. Changes to the proposed list were made after USTR and the interagency Section 301 Committee sought and received written comments and testimony during a two-day public hearing last month. US Customs and Border Protection (CBP) will begin to collect the additional duties on the Chi- nese imports on August 23.

In March 2018, USTR released the findings of its exhaustive Section 301 investigation that found China’s acts, policies and practices related to technology transfer, intellectual property and innovation are unreasonable and discriminatory and burden U.S. commerce.

The announcement said a formal notice of the $16 billion tariff action will be published shortly in the Federal Register. As in the case of the first tranche of additional tariffs, the notice will announce a process by which interested persons may request the exclusion of particular products covered by a tariff line subject to the additional duties.

USTR proposes modification from 10% to 25% duties and extends public comment period for new section 301 actions On August 7, 2018, the Office of the United States Trade Representative (USTR) published in the Federal Register a document extending the public comment period to a notice [Docket No. USTR-2018-0026] published on July 17, 2018 (83 Fed. Reg. 33608), in which USTR proposed a modification of the action taken in the Section 301 investigation of China’s Acts, Policies, and Practices Related to Technology Transfer, Intellectual Property, and Innovation in the form of an additional 10 percent ad valorem duty on products of China with an annual trade value of approximately $200 billion. The July 17th notice sought public comment and provided notice of a public hearing regarding this proposed modification of the action in the investigation. On August 1, 2018, USTR announced that the Presi- dent had directed USTR to consider raising the level of the additional duty in the proposed supplemental action from 10 percent to 25 percent. In light of this possible increase in the rate of additional duty, the Trade Representative is extending certain comment periods set out in the July 17th notice.

To be assured of consideration, you must submit comments [Docket No. USTR- 2018- 0026] and responses in accordance with the following schedule:

• The due date for filing requests to appear and a summary of expected testimony at the public hearing and for filing pre-hearing submissions is extended from July 27 to August 13, 2018.

International Trade Compliance Update | September 2018 23

Baker McKenzie

• September 6, 2018: The due date for submission of written comments is extended from August 17 to September 6, 2018. • August 20-23, 2018: The scheduled start date of the Section 301 hearing (August 20) has not changed. The Section 301 Committee may extend the length of the hearing depending on the number of additional interested persons who request to appear. The Section 301 Committee will convene the public hearing in the main hearing room of the U.S. Inter- national Trade Commission, 500 E Street SW Washington DC 20436 beginning at 9:30 am on August 20, 2018. • September 6, 2018: The due date for submission of post-hearing rebuttal comments is extended from August 30 to September 6, 2018

USTR announces new GSP eligibility review for Turkey On August 3, 2018, the Office of the United States Trade Representative (USTR) announced that it is reviewing the eligibility of Turkey to participate in the Gener- alized System of Preferences (GSP) program based on concerns related to its compliance with the GSP market access criterion. The announcement said:

• This criterion, one of fifteen defined by Congress in the statute authorizing the GSP program, covers the extent to which beneficiary countries have assured the United States reasonable and equitable access to their markets. • “The Trump Administration has concerns with Turkey’s compliance with GSP’s market access criterion,” said Deputy U.S. Trade Representative Jef- frey Gerrish. “We hope that Turkey will work with us to address the concerns that led to this new review of their duty-free access to the United States.” • Turkey has imposed additional tariffs on $1.78 billion of U.S. imports only and not to other trading partners. USTR is launching a self-initiated GSP eligibility review of Turkey based on concerns related to its compliance with the GSP market access criterion. • The United States imported $1.66 billion in 2017 from Turkey under the GSP program, representing 17.7 percent of total U.S. imports from Turkey. The leading GSP import categories were vehicles and vehicle parts, jewelry and precious metals, and stone articles. • A public hearing and comment period for Turkey’s GSP eligibility review will be announced in an upcoming Federal Register notice.

USTR seeks comments on WTO disputes The Office of the US Trade Representative (USTR) published the following documents related to WTO disputes in the Federal Register:

F.R. Date Matter Comments Due WTO Dispute Settlement Proceeding Regarding United 09-04-18, to be States—AntiDumping Measures on Fish Fillets From Vi- assured of timely 08-02-18 etnam [Docket Number USTR–2018–0021; Dispute Num- consideration by ber WT/DS536] USTR

ITC releases latest HTS (Revisions 10,11) On August 24, 2018, the US International Trade Commission (ITC) announced that the 2018 Harmonized Tariff Schedule of the United States (HTS) Revision 10 has been released and is now available:

• View Rev. 10 HTS (Full document and chapter-by chapter)

International Trade Compliance Update | September 2018 24

Baker McKenzie

All of the changes in this revision affect subchapter III of chapter 99 of the tariff schedule, and the changes derive from a Federal Register notice issued by the Office of the United States Trade Representative, “Notice of Action Pursuant to Section 301: China’s Acts, Policies, and Practices Related to Technology Trans- fer, Intellectual Property, and Innovation” (83 Fed. Reg. 40823 of August 16, 2018), effective August 23, 2018. Revision 10 includes modifications to US notes 20 (a) and (b) and 9903.88.01 and new US notes 20 (c) and (d) and 9903.88.02.

On or about August 30, 2018, The US International Trade Commission issued Revision 11 to the Harmonized Tariff Schedule of he United States. Revision 11 includes modifications required by:

• Pres. Proc. 9776 and 9777 - to implement the recent exemptions from absolute quotas on steel from Argentina, Brazil and South Korea and aluminum from Ar- gentina (Effective Aug. 30, 2018); • Pres. Proc. 9771 - Changes to AGOA and the US Bahrain FTA rules of origin (Ef- fective Sept. 1, 2018); and • Committee for Statistical Annotation of the Tariff Schedules, which modified subheading 9705.00.0085 (Effective July 1, 2018) for statistical reporting.

ITC releases “The Year in Trade 2017” The US International Trade Commission (ITC) has released The Year in Trade 2017 - Operation of the Trade Agreements Program (Pub. No. 4817). The 314 page report is the 69th in a series of annual reports submitted to the US Con- gress under section 163(c) of the Trade Act of 1974 (19 U.S.C. 2213(c)) and its predecessor legislation. Section 163(c) states that “the International Trade Commission shall submit to the Congress at least once a year, a factual report on the operation of the trade agreements program.”

According to the Preface:

This report is one of the principal means by which the ITC provides Congress with factual information on trade policy and its administration for 2017. The trade agreements program includes “all activities consisting of, or related to, the administration of international agreements which primarily concern trade and which are concluded pursuant to the authority vested in the President by the Constitution” and by congressional legislation.

The Executive Summary states:

The level of U.S. imports and U.S. exports of goods and services depends on many factors, including the strength of the U.S. and global economies. Growth in these economies contributes to growth in crossborder trade. The rate of global economic growth increased in 2017, rising from 2.5 percent in 2016 to 3.3 percent in 2017. Economic growth in the United States also increased in 2017: U.S. real gross domestic product (GDP) grew 2.3 percent in 2017, compared to an increase of 1.5 percent in 2016. Overall global economic growth was fueled by growth of advanced economies such as the United States and top trading partners including the European Un- ion (EU), Canada, and Japan. Some emerging and developing economies—e.g., China, South Korea, and Taiwan—also contributed to global economic growth. India and Mexico, however, grew at a slower rate in 2017 than in 2016. Both U.S. exports and U.S. imports of goods increased in value in 2017. The value of U.S. merchandise exports totaled $1,546.7 billion in 2017, up 6.6 percent ($95.7 billion) from $1,451.0 billion in 2016. The value of U.S. merchandise imports totaled $2,342.9 billion in 2017, up 7.1 percent ($155.1 billion) from $2,187.8 billion in 2016. The largest increase in both U.S. imports and U.S. exports was in energy-related products. In particular, the increase in the value of U.S. imports of crude petroleum

International Trade Compliance Update | September 2018 25

Baker McKenzie

was due to the increase in the price of U.S. crude, whereas the increase in the value of U.S. exports of crude was driven by increases in both the price and volume of U.S. crude exports, resulting in a decline in the sector’s deficit to $4.5 billion. The agricultural sector was the only goods sector to experience a trade surplus in 2017, with $5.7 billion more in exports than imports. The trade deficit in the other sectors of the U.S. economy increased. Overall, U.S. imports increased more than U.S. exports in terms of value, resulting in an increase in the U.S. merchandise trade deficit from $752.5 billion in 2016 to $811.2 billion in 2017 (figure ES.1). U.S. two-way cross-border trade in private services, which excludes exports and imports of government goods and services n.i.e., increased 5.0 percent to $1,277.7 billion in 2017. U.S. exports of private services grew 3.8 percent to $761.7 billion in 2017, while U.S. imports of private services grew 6.8 percent to reach $516.0 billion in 2017. As a result, the U.S. surplus in private services fell from $250.4 billion in 2016 to $245.7 billion in 2017.

ITC issues summary of practice relating to APOs On August 20, 2018 the US International Trade Commission (ITC) published in the Federal Register a summary of ITC practice relating to administrative protective orders (APOs). Since February 1991, the ITC has published in the Federal Register reports on the status of its practice with respect to violations of its APOs under title VII of the Tariff Act of 1930, in response to a direction contained in the Conference Report to the Customs and Trade Act of 1990. Over time, the ITC has added to its report discussions of APO breaches in ITC proceedings other than under title VII and violations of the ITC’s rules including the rule on bracket- ing business proprietary information (BPI) (the “24-hour rule”). The notice provides a summary of breach investigations (APOB investigations) completed during calendar year 2017. This summary addresses an APOB investigation related to a proceeding under title VII of the Tariff Act of 1930. The ITC intends that this report inform representatives of parties to ITC proceedings as to some specific types of APO breaches encountered by the ITC and the corresponding types of actions the ITC has taken.

ITC investigations and Reports The ITC initiated (I), terminated (T), requested information or comments (RFC), issued a report (R), or scheduled a hearing (H) regarding the following investigations (other than 337 and antidumping, countervailing duty or safeguards) this month: (Click on the investigation title to obtain details from the Federal Register notice or ITC Press Release)

Investigation. No. and title Requested by: Inv. No. 332-352 - Andean Trade Preference Act: Impact on U.S. In- dustries and Consumers and on Drug Crop Eradication and Crop Sub- Statutory stitution [18th report] (I/RFC) The Year in Trade (USITC Pub. No. 4817) (R) Statutory Inv. No. 332-569 - Trade-Related Barriers that Affect Exports of U.S.

Small- and Medium-Sized Enterprises to the United Kingdom (I)

Commerce restricts imports of certain Mexican fish products On August 28, 2018, the National Marine Fisheries Service (NMFS), National Oceanic and Atmospheric Administration (NOAA), Commerce published in the Federal Register a notification advising that the Secretary of Commerce, in cooperation with the Secretaries of Treasury and Homeland Security, is, under the authority of the Marine Mammal Protection Act (MMPA), giving notice of import restrictions on fish and fish products from Mexico caught with gillnets deployed in

International Trade Compliance Update | September 2018 26

Baker McKenzie

the range of the vaquita, an endangered porpoise. Importation into the United States from Mexico of fish and fish products harvested by gillnets in the upper Gulf of California (UGC) within the vaquita’s geographic range is now prohibited. These import restrictions are being implemented as required by a court order. These trade restrictions remain in effect until further court action amends the preliminary injunction. Harmonized Tariff Schedule (HTS) codes associated with the prohibited fish and fish products are identified in the notification (and in CBP messages, the latest of which is CSMS #18-000502, issued by CBP on August 28). NMFS is also requiring that all other fish and fish products not within the scope of the import restrictions but imported under the same published HTS codes be accompanied by a Certification of Admissibility. Compliance with the import restrictions and Certification of Admissibility described in the document is required beginning August 24, 2018, and will remain in effect until further notice is published in the Federal Register indicating otherwise.

CBP publishes CY 2018 Tuna TRQ (1604.14.22, HTSUS) On August 29, 2018, US Customs and Border Protection (CBP) published in the Federal Register a document [CBP Dec. 18-10] announcing the quota quantity of tuna in airtight containers for Calendar Year 2018. Each year, the tariff-rate quota for tuna described in subheading 1604.14.22, Harmonized Tariff Schedule of the United States (HTSUS), is calculated as a percentage of the tuna in airtight containers entered, or withdrawn from warehouse, for consumption during the preceding Calendar Year. It has been determined that 13,951,961 kilograms of tuna in airtight containers may be entered, or withdrawn from warehouse, for consumption during the CY 2018, at the rate of 6.0 percent ad valorem under subheading 1604.14.22, HTSUS. Any such tuna which is entered, or withdrawn from warehouse, for consumption during the current calendar year in excess of this quota will be dutiable at the rate of 12.5 percent ad valorem under subheading 1604.14.30, HTSUS. The 2018 tariff-rate quota is applicable to tuna in airtight containers entered, or withdrawn from warehouse, for consumption during the period January 1, 2018 through December 31, 2018.

CBP issues interim rule on alcohol excise tax refunds On August 16, 2018, US Customs and Border Protection (CBP) published in the Federal Register an interim rule soliciting comments [CBP Dec. 18–09; Docket No. USCBP–2018–0033] to revisions updating language in the CBP regulations to reflect the current organization of CBP and the Department of the Treasury. The document also eliminates a restriction pertaining to CBP’s authority to refund excessive duties, taxes, fees, or interest imposed on distilled spirits, wine, and beer to facilitate implementation of Subpart A (Craft Beverage Modernization and Tax Reform) of Part IX of the Tax Cuts and Jobs Act, signed December 22, 2017, commonly referred to as the Craft Beverage Modernization Act (CBMA).

The CBMA amended the Internal Revenue Code for two calendar years with respect to the tax treatment of alcoholic beverages, including beer, wine, and distilled spirits. For an importer to be eligible to receive a reduced tax rate or a tax credit, the importer must be able to substantiate that the foreign producer has assigned an allotment of its reduced tax rate or tax credits to the beer, wine, or distilled spirits imported by that importer. The new 19 C.F.R. § 24.36(d)(10) makes it clear that CBP has authority to refund the difference between the full excise taxes an importer pays at the time of entry summary filing and the CBMA’s lower effective tax rate. An importer must request and substantiate its entitlement to the reduced tax rate or tax credit appropriately.

International Trade Compliance Update | September 2018 27

Baker McKenzie

The interim final rule is effective August 16, 2018; comments must be received by October 15, 2018.

CBP publishes long-awaited proposed drawback regulations On August 2, 2018, US Customs and Border Protection (CBP) published in the Federal Register its long-awaited notice of proposed rulemaking (NPRM) [USCBP-2018-0029] on modernized drawback procedures under the Trade Facil- itation and Trade Enforcement Act of 2015 (TFTEA). The drawback regulations were the subject of Congressional hearings as well as a lawsuit in which the Court of International Trade found that the statutory deadline had been missed.

The NPRM proposes to amend the CBP regulations to implement changes to the drawback regulations as directed by the TFTEA. The proposed regulations establish a new process for drawback pursuant to TFTEA which liberalizes the merchandise substitution standard, simplifies recordkeeping requirements, extends and standardizes timelines for filing drawback claims, and requires the electronic filing of drawback claims. TFTEA allows a transition period wherein drawback claimants will have the choice between filing claims under the existing process detailed in the current regulations or filing claims under the proposed new process. The NPR document explains how filings during the transition period will work, discusses the interim policy guidance procedures for filing claims prior to these regulations becoming final, and proposes to make TFTEA-related changes, dealing with bonds, regarding joint and several liability for the importer of the goods and the drawback claimant, and technical corrections and conforming changes to CBP regulations.

The NPRM also proposes to clarify the prohibition on the filing of a substitution drawback claim for internal revenue excise tax paid on imported merchandise in situations where no excise tax was paid upon the substituted merchandise; or the substituted merchandise is the subject of a different claim for refund or drawback of tax under any provision of the Internal Revenue Code. CBP is proposing these amendments regarding excise taxes to protect the revenue by clarifying the relationship between drawback claims and Federal excise tax liability. Further, CBP proposes to add a basic importation and entry bond condition to foster compliance.

Comments must be received on or before September 17, 2018.

[Note: On July 27, 2018, US Customs and Border Protection (CBP) released an advance copy of the notice of proposed rulemaking published in the Federal Regis- ter on August 2, 2018.]

On August 20, 2018, CBP published a correction to the proposed drawback rules. Specif- ically, CBP inadvertently proposed in 19 C.F.R. 190.32(d)(2) an exemption for drawback claims for wine which included an imprecise reference to the entirety of paragraph (b). The reference should have been only to paragraphs (b)(1) and (b)(2), the specific paragraphs regarding the “lesser of” rule. As is evident from the entirety of the proposed rule, paragraph (b)(3), which implements the statutory prohibition on double drawback, applies to all drawback claims for wine. This technical correction remedies a clerical error that occurred when the language of paragraph (b)(3) was moved from a different part of the proposed regulations.

International Trade Compliance Update | September 2018 28

Baker McKenzie CBP publishes adjusted COBRA fees for FY 2019 On August 1, 2018, US Customs and Border Protection (CBP) published in the Federal Register a general notice [CBP Dec. 18-08] announcing that CBP is adjusting certain customs user fees and limitations established by the Consolidated Omnibus Budget Reconciliation Act (COBRA) for Fiscal Year 2019 in accordance with the Fixing America’s Surface Transportation Act (FAST Act) as implemented by CBP regulations. The adjusted amounts of customs COBRA user fees and their corresponding limitations set forth in this notice for Fiscal Year 2019 are required as of October 1, 2018.

Table 1 — Customs COBRA User Fees and Limitations Found in 19 C.F.R. 24.22 as Ad- justed for Fiscal Year 2019

19 U.S.C. 19 C.F.R. New Adjusted Customs COBRA User Fee/Limitation 58c 24.22 Fee/Limitation (a)(1) (b)(1)(i) Fee: Commercial Vessel Arrival Fee $458.35 Fee: Commercial Vessel Arrival Fee Limitation: (b)(5)(A) (b)(1)(ii) $6,245.97 Calendar Year Maximum for Commercial (a)(8) (b)(2)(i) Fee: Barges and Other Bulk Carriers Arrival Fee $115.37 Limitation: Calendar Year Maximum for Barges (b)(6) (b)(2)(ii) $1,573.29 and Other Bulk Carriers Arrival Fees Fee: Commer- (a)(2) (c)(1) 2, 3 $5.75 cial Truck Arrival Fee (c)(2) and Limitation: Commercial Truck Calendar Year (b)(2) 4 $104.89 (3) Prepayment Fee (a)(3) (d)(1) Fee: Railroad Car Arrival Fee $8.65 (d)(2) and Limitation: Railroad Car Calendar Year Prepay- (b)(3) $104.89 (3) ment Fee Fee and Limitation: Private Vessel or Private (e)(1) and (a)(4) Aircraft - First Arrival/Calendar Year Prepayment $28.84 (2) Fee (a)(6) (f) Fee: Dutiable Mail Fee $5.77 Fee: Commercial Vessel or Commercial Aircraft (a)(5)(A) (g)(1)(i) $5.77 Passenger Arrival Fee Fee: Commercial Vessel Passenger Arrival Fee (a)(5)(B) (g)(1)(ii) (from one of the territories and possessions of $2.02 the United States) (a)(7) (h) Fee: Customs Broker Permit User Fee $144.74 2. The Commercial Truck Arrival fee is the CBP fee only- it does not include the USDA APHIS agricultural quarantine and inspection (APHIS/AQI) fee that is collected by CBP on behalf of USDA. See 7 C.F.R. 354.3(c) and 19 C.F.R. 24.22(c)(1). Once 19 Single Crossing Fees have been paid and used for a vehicle identification number (VIN)/vehicle in a Decal and Transponder Online Procurement System (DTOPS) account within a calendar year, the payment required for the 20th (and subsequent) single-crossing is only the APHIS/AQI fee and no longer includes the CBP Commercial Truck Arrival fee (for the remainder of that calendar year). 3. The Commercial Truck Arrival fee is adjusted down from $5.77 to the nearest lower nickel. See 82 Fed. Reg. 50523 (November 1, 2017). 4. See footnote 2 above.

Table 2 — Customs COBRA User Fees and Limitations Found in 19 C.F.R. 24.23 as Ad- justed for Fiscal Year 2019

19 C.F.R. New Adjusted 19 U.S.C. 58c Customs COBRA User Fee/Limitation 24.23 Fee/Limitation Fee: Express Consignment Carrier/ Central- (b)(9)(A) (ii) (b)(1)(i)(A) ized Hub Facility Fee, Per Individual Way- $1.05 bill/Bill of Lading Fee

Limitation: Minimum Express Consignment (b)(9)(B)(i) (b)(1)(i)(B)(2) Carrier/Centralized Hub Facility Fee5 $0.37

International Trade Compliance Update | September 2018 29

Baker McKenzie

19 C.F.R. New Adjusted 19 U.S.C. 58c Customs COBRA User Fee/Limitation 24.23 Fee/Limitation Limitation: Maximum Express (b)(9)(B)(i) (b)(1)(i)(B)(2) Consignment Carrier/Centralized Hub $1.05 Facility Fee (a)(9)(B)(i); Limitation: Minimum Merchandise Pro- (b)(1)(i)(B)(1) $26.22 (b)(8)(A)(i) cessing Fee (Rate remains 0.3464%)

(a)(9)(B)(i); Limitation: Maximum Merchandise Pro- (b)(1)(i)(B)(1) 8 $508.70 (b)(8)(A)(i) cessing Fee (Rate remains 0.3464%) Fee: Surcharge for Manual Entry or Re- (b)(8)(A)(ii) (b)(1)(ii) lease $3.15 Fee: Informal Entry or Release; Automated (a)(10)(C)(i) (b)(2)(i) and Not Prepared by CBP Personnel $2.10 Fee: Informal Entry or Release; Manual and (a)(10)(C)(ii) (b)(2)(ii) $6.29 Not Prepared by CBP Personnel Fee: Informal Entry or Release; Automated (a)(10)(C)(iii) (b)(2)(iii) or Manual; Prepared by CBP Personnel $9.44 Fee: Express Consignment Carrier/ (b)(9)(A)(ii) (b)(4) Centralized Hub Facility Fee, Per $1.05 Individual Waybill/Bill of Lading Fee

5. Although the minimum limitation is published, the fee charged is the fee required by 19 U.S.C. 58c(b)(9)(A)(ii). 8. For monthly pipeline entries, see: https://www.cbp.gov/trade/entry-summary/pipeline-monthly- entry-processing/pipeline-line-qa .

Miscellaneous CBP and ICE Federal Register documents The following documents not discussed above were published by US Customs and Border Protection (CBP) or US Immigration and Customs Enforcement (ICE) in the Federal Register. [Note that multiple listings of approved gaugers and laboratories reflects different locations and/or products.]

F.R. Date Subject CBP: Accreditation and Approval of Laboratory Service, Inc., as a Commercial 08-02-18 Gauger and Laboratory [Seabrook, TX] (N) CBP: Agency Information Collection Activities: Biometric Identity [OMB Control 08-09-18 No. 1651-0138] (N) CBP: Agency Information Collection Activities: Free Trade Agreements [OMB Control No. 1651–0117] (N) 08-10-18 ICE: Agency Information Collection Activities: Allegation of Counterfeiting and Intellectual Piracy; Extension Without Change, of a Currently Approved Collec- tion [OMB Control No. 1653-0053] (N) CBP: Approval of SGS North America, Inc., as a Commercial Gauger (N) [Texas City, TX] CBP: Accreditation and Approval of SGS North America, Inc., as a Commercial 08-13-18 Gauger and Laboratory (N) [Bridgeview, IL] CBP: Accreditation and Approval of SGS North America, Inc., as a Commercial Gauger and Laboratory (N) [Carteret, NJ] CBP: Agency Information Collection Activities: Certificate of Origin [OMB Control 08-14-18 No. 1651-0016] [CBP Form 3229] CBP: Accreditation and Approval of Intertek USA, Inc. (Sulphur, LA), as a 08-15-18 Commercial Gauger and Laboratory (N) CBP: Agency Information Collection Activities: Guam-CNMI Visa Waiver Infor- 08-21-18 mation [OMB Control No. 1651-0109] (N) [CBP Form I-736] CBP: Accreditation and Approval of Saybolt LP (Linden, NJ) as a Commercial 08-22-18 Gauger and Laboratory (N)

International Trade Compliance Update | September 2018 30

Baker McKenzie

F.R. Date Subject CBP: Accreditation and Approval of AmSpec LLC (Mobile, AL) as a Commercial Gauger and Laboratory (N) CBP: Accreditation and Approval of Inspectorate America Corporation (Pasade- 08-31-18 na, TX), as a Commercial Gauger and Laboratory (N)

CBP publications and fact sheets During the period of coverage of this Update, CBP issued the following new or revised publications and fact sheets [Note: “CBP and Trade Automated Interface Requirements” is abbreviated as “CATAIR” below]:

• ACE ABI/AIER Document Image System (DIS) Implementation Guide • Automated In-Bond Processing Bussiness Process Document (ver 1.0 – Aug. 8, 2018) • CATAIR Implementation Guide ACE Cargo/ Manifest/Entry Release Query (Au- gust 2018) • CAMIR ACE Air Import Manifest Appendix A – Codes (June 2018) • UN/EDIFACT Truck Manifest Implementation Guide Customs Response Mes- sage (CUSRES) Status Notification (July 2018) • CATAIR ACE Extract Reference File (June 25, 2018) Revocations or modifications of CBP rulings See separate section below.

CBP reminds traders of deadline to file retroactive GSP claims CSMS #18-000505 (August 30, 2018) reminds traders that the deadline for filing GSP retroactive duty refund requests is September 19, 2018. On March 23, 2018, the President signed into law the “Consolidated Appropriations Act, 2018,” (Public Law 115-141), which reauthorized the Generalized System of Prefer- ences (GSP) program for goods entered or withdrawn from warehouse, for consumption, from January 1, 2018 through December 31, 2020. The law, effective April 22, 2018, also provided for the retroactive refund of all duties, without interest; to the importer of record (IOR) of GSP-eligible goods entered during the January 1, 2018 through April 21, 2018 lapse period.

Status - Phased GSP retroactive duty refund: Phase I – CBP has completed the auto refund processing of importations entered during the lapse with special program indicator (SPI) “A” and checks are forthcoming. Phase II – CBP will begin processing shortly the manual refunds of importations entered during the lapse with the SPI “A” that may be subject to additional review (i.e., AD/CVD, 232 remedy, reconciliation, etc.) Phase III – Importers wishing to claim GSP preference on importations entered during the lapse period without the SPI “A” must input a Post Summary Correction (PSC) or protest (CBP will accept a protest, although not a true 19 USC § 1514) to the corresponding Port team or Center of Excellence and Expertise team requesting the GSP refund no later than September 19, 2018. Phase III GSP Duty Refund PSC or Protest GSP refund requests may be submitted as either a PSC if the entry summary is not liquidated, or a protest if the entry summary has liquidated, in accordance with 19 CFR 174. CBP reserves the right to reject the duty refund request if the importer does not provide sufficient line-level data.

International Trade Compliance Update | September 2018 31

Baker McKenzie

Request Deadline Per Public Law 115-141 (H.R. 1625), CBP will deny all GSP duty refund requests received after September 19, 2018, unless the request is a re-submission of a previously submitted and improperly denied request. Additional Information CBP’s GSP page is available here. CSMS 18-000296, Generalized System of Preferences (GSP) Reinstated Through December 31, 2020, of April 20, 2018, is available here. For questions regarding the GSP Program, contact Lee Licata, Trade Agreements Branch, at [email protected] or at (202) 325-6541, and for refund processing questions, contact Jennelle Cray, Drawback and Revenue Branch, at OTENTRYSUM- [email protected] or (202) 325-6937.

CBP updates guidance on section 301 duties on Chinese goods On August 21, 2018, CBP issued CSMS #18-000493, Update: Section 301 Trade Remedies Assessed on Certain Products from China. The text is shown below:

UPDATE: Section 301 Trade Remedies Assessed on Certain Products from China; Additional List of Products Subject to Section 301 Remedy. BACKGROUND: On August 18, 2017, the Office of the United States Trade Representative (USTR) initiated an investigation under Section 301 of the Trade Act of 1974 into the government of China’s acts, policies, and practices related to technology transfer, intellectual property, and innovation. On June 20, 2018, the USTR published a Notice of Action and Request for Public Comment Concerning Proposed Determination of Action Pur- suant to Section 301, imposing additional import duties on a list of Chinese products. See Federal Register 83 FR 28710 (June 20, 2018). On August 16, 2018, the USTR published a Notice of Action providing for the imposition of additional import duties on a second list of Chinese Products. The August 16, 2018 list of products covered by the Section 301 remedy, which comprises 279 eight- digit Harmonized Tariff Schedule of the United States (HTSUS) subheadings, can be found in Annex A to the USTR’s August 16, 2018 notice of action. See Federal Reg- ister 83 FR 40823 (August 16, 2018). GUIDANCE: Products Covered by the June 20, 2018 List for the Section 301 Action The additional import duties for Chinese goods covered by the June 20, 2018 list were effective with respect to goods entered, or withdrawn from warehouse for consumption, on or after 12:01 AM Eastern Daylight Time on July 6, 2018. In addition to reporting the Chapters 1-97 HTSUS classification of the imported merchandise, importers shall also report the 9903.88.01 special tariff number for goods subject to the additional duty assessment of 25% ad valorem as a result of the Sec- tion 301 trade remedy. 9903.88.01: 25% ad valorem additional duty for articles the product of China Products Covered by the August 16, 2018 List for the Section 301 Action The additional import duties for Chinese goods covered by the August 16, 2018 list of products subject to the Section 301 action are effective with respect to goods entered, or withdrawn from warehouse for consumption, on or after 12:01 AM Eastern Daylight Time on August 23, 2018. Any article classified in a subheading covered by the August 16 list that is a product of China is subject to a 25% ad valorem duty rate, in addition to the general (Column 1) rate of duty for that particular subheading.

International Trade Compliance Update | September 2018 32

Baker McKenzie

In addition to reporting the Chapter 1-97 HTSUS classification of the imported merchandise, importers shall also report the 9903.88.02 special tariff number for goods subject to the additional duty assessment of 25% ad valorem as a result of the Sec- tion 301 trade remedy. 9903.88.02: 25% ad valorem additional duty for articles the product of China All Products Covered by Section 301 Duties The Section 301 duties only apply to products of China, and are based on the country of origin, not country of export. CHAPTER 98 The USTR’s August 16, 2018 notice of action has provided updated instructions in respect to the use of Chapter 98 provisions for all merchandise on the June 20, 2018 and August 16, 2018 lists covered by the Section 301 remedy. The additional duties imposed by headings 9903.88.01 and 9903.88.02 do not apply to goods for which entry is properly claimed under a provision of chapter 98 of the HTSUS, except for goods entered under headings 9802.00.40, 9802.00.50, 9802.00.60, and 9802.00.80. For headings 9802.00.40, 9802.00.50, and 9802.00.60, the additional duties apply to the value of repairs, alterations, or processing performed abroad, as described in the applicable heading. For heading 9802.00.80, the additional duties apply to the value of the article less the cost or value of such products of the United States, as described in heading 9802.00.80. The provisions related to goods entered under headings 9802.00.40, 9802.00.50, 9802.00.60, and 9802.00.80 are effective with respect to goods entered, or withdrawn from warehouse for consumption, on or after 12:01 AM Eastern Daylight Time on Au- gust 23, 2018. CHAPTER 98 FILING INSTRUCTIONS When submitting an entry in which a heading or subheading in Chapter 98 is claimed on merchandise covered by the Section 301 remedy, the following instructions will apply. When submitting an entry using a Chapter 98 provision that normally requires the reporting of a secondary Chapter 1-97 HTSUS classification, a filer must first report subheading 9903.88.01 or 9303.88.02, as applicable, followed by the applicable Chapter 98 subheading, and the Chapter 1-97 HTSUS classification for the commodity being imported. When submitting an entry using a Chapter 98 provision that does not normally require the reporting of a secondary Chapter 1-97 HTSUS classification, neither 9903.88.01/02 nor the Chapter 1-97 HTSUS should be reported. When submitting an entry for a Temporary Importation under Bond (TIB), a filer must first report the applicable subheading in Chapter 98 (i.e., in heading 9813), followed by subheading 9903.88.01/02, and the Chapter 1-97 HTSUS for the commodity being imported. TRADE PREFERENCE PROGRAMS AND TEMPORARY REDUCTIONS IN RATES OF DUTY Products of China that are covered by the Section 301 remedy and that are eligible for special tariff treatment under general note 3(c)(i) to the tariff schedule, or that are eligible for temporary duty exemptions or reductions under subchapter II to chapter 99, shall be subject to the additional 25 percent ad valorem rate of duty imposed by headings 9903.88.01 and 9903.88.02. FOR FURTHER INFORMATION: For further information, please refer to the USTR’s Notice of Action and Request for Public Comment Concerning Proposed Determination of Action Pursuant to Section 301: China’s Acts, Policies, and Practices Related to Technology Transfer, Intellectu- al Property, and Innovation, 83 FR 28710 (June 20, 2018); and the August 16, 2018 Notice of Action Pursuant to Section 301, 83 FR 40823 (August 16, 2018).

International Trade Compliance Update | September 2018 33

Baker McKenzie

Questions related to Section 301 entry filing requirements should be emailed to [email protected]. Questions from the importing community concerning ACE rejections should be referred to their Client Representative.

CSMS #18-000498 “UPDATE: Section 301 Trade Remedies Assessed on China; Drawback Claims” (Aug. 23, 2018) indicated that Section 301 duties are eligible for duty drawback.

CBP restricts imports of certain Mexican fish and fish products CSMS #18-000502 (August 28, 2018) [which replaces and supersedes CSMS #18-000482, 18-000483 and 18-000484] advises the trade that a Notification was published by NOAA in the Federal Register on August 28, 2018, entitled “Imple- mentation of Import Restrictions; Certification of Admissibility for Certain Fish Products from Mexico” (83 Fed. Reg. 43792) in response to a United States Court of International Trade order (Slip-Op 18-92) and in cooperation with the National Marine Fisheries Service (NMFS), CBP, imposed immediate import restrictions on fish and fish products from Mexico caught with gillnets deployed in the range of the vaquita, a species of porpoise endemic to northern Gulf of Cali- fornia waters in Mexico and listed as an endangered species under the U.S. En- dangered Species Act. The CSMS states:

This action continues the existing prohibitions on the importation into the United States from Mexico of all shrimp, curvina, sierra, and chano fish and fish products harvested by gillnets in the upper Gulf of California (UGC) within the vaquita’s geographic range. To effectuate the court order, beginning on August 14, 2018, CBP and NMFS required that all imports of shrimp, curvina, sierra, and chano fish and fish products from Mexico as country of origin be accompanied by the “U.S. Import Certifi- cation of Admissibility” set forth below. In addition, to ensure complete, effective, and immediate implementation, CBP and NMFS required that all other fish and fish products not within the scope of the import restrictions but imported under the attached HTS codes list from Mexico as country of origin be accompanied by the certification set forth below. This message is notice that as part of the continued interim procedure, and in accordance with the August 28, 2018 Federal Register Notice referenced above, effective immediately either the NMFS CERTIFICATION OF ADMISSIBILITY, available at https://www.fisheries.noaa.gov/foreign/marine-mammal-protection/seafood-import- restrictions , and attached hereto, or the “U.S. Import Certification of Admissibility” set forth below, must accompany imports of fish and fish products under the HTS codes list below from Mexico as country of origin. While CBP will be permitting the use of the U.S. IMPORT CERTIFICATION OF ADMISSIBILITY for an additional transition period to provide the trade sufficient time to fully comply with the newly-instituted procedures, we strongly urge the immediate use of the NMFS CERTIFICATION OF AD- MISSIBILITY. Following the conclusion of the transition period, this will be the only permitted form. This form requires the signature of an appropriate Mexican Govern- ment official. If a completed U.S. IMPORT CERTIFICATION OF ADMISSIBILITY or NMFS CERTI- FICATION OF ADMISSIBILITY is not filed, then the entire shipment will be denied entry. The U.S. IMPORT CERTIFICATION OF ADMISSIBILITY or NMFS CERTIFICA- TION OF ADMISSIBILITY may be submitted to CBP via the Document Imaging Sys- tem (DIS), e-mail, fax or physical presentation in hardcopy form to the appropriate CBP Port of Entry official for review. These trade restrictions on these products harvested by gillnets in the Upper Gulf of California of Mexico are an interim measure and will continue until further notice requiring that the NMFS CERTIFICATION OF ADMISSIBILITY will be the only accepta- ble means of certification. Any questions of CBP regarding this message should be forwarded to the Commer- cial Targeting & Analysis Center (CTAC) at [email protected] .

International Trade Compliance Update | September 2018 34

Baker McKenzie

U.S. IMPORT CERTIFICATION OF ADMISSIBILITY: As the Importer of Record or duly authorized official/agent of the importer of record, I do hereby certify, to the best of my knowledge and belief, that the fish/fish products contained in this shipment are of species of fish or fish products, or from fisheries, not caught with gillnets deployed in the range of the vaquita, in the upper Gulf of Califor- nia waters in Mexico. ______Printed Name (Importer/Agent) ______Signature ______Date ______Telephone ______E-mail • List_of_HTS_codes.pdf • Admissibility_Form__Approved_For_MMPA.pdf

• Instructions_for_Cert_of_Admissibility_Form.pdf

CSMS messages The following CBP Cargo Systems Messaging Service (CSMS) notices were issued during the period covered by this Update. ACE outages or delays which have already occurred and problems which have been resolved are not included below.

Date CSMS# Title Information on COBRA User Fee Changes Effective October 1, 18-000465 2018 08-01-18 18-000466 In-Bond Enforcement Discretion For 8/4/18 Implemenatation 18-000467 Error Coded P11 – Action – SU Rejections 7/30/2018 08-03-18 18-000468 Updated Document Image System (DIS) Implementation Guide 18-000470 ACE PRODUCTION PGA Deployment, Tues 8/7/2018 @0500ET 08-06-18 CSMS# 18-000471 - Deferred: ACE PRODUCTION PGA/ITDS 18-000471 Deployment Tues Aug. 7, 2018 08-07-18 18-000472 Voiding Inactive Importer of Record Numbers Reminder: CBP Client Representatives Webinar for ABI Brokers 08-08-18 18-000473 and Importer Self-Filers New ACE Reports Documentation Posted to ACE Reports Land- 18-000475 ing Page Update - Additional Duty on Imports of Steel Articles Under Sec- 08-12-18 18-000477 tion 232, Republic of Turkey 08-13-18 18-000478 FDA New CVM Classes and New CVM Product Codes 18-000479 Harmonized System Update (1812) created on 08/13/18 Updated Implementation Guides for ACE Manifest and ABI Que- 18-000480 08-14-18 ries 18-000481 Clarification for SO Message: Bill Deleted After Arrival 18-000482 Import Restrictions on Certain Mexican Fish and Fish Products Updated - Import Restrictions on Certain Mexican Fish and Fish 18-000483 08-15-18 Products 18-000484 Import restrictions on Certain Mexican Fish and Fish Products. 18-000486 Update on Issues with FDA Submissions 08-19-18 18-000487 Resolved: FDA network restored 18-000488 ACS Broker Statistics to be Turned Off on September 22, 2018 08-20-18 18-000489 FDA Experiencing Delays

International Trade Compliance Update | September 2018 35

Baker McKenzie

Date CSMS# Title 18-000490 Resolved: FDA Delays 18-000491 ACE issue - ABI not processing 18-000492 Resolved - ACE ABI transactions are processing 08-21-18 Update: Section 301 Trade Remedies Assessed on Certain 18-000493 Products from China 08-22-18 18-000494 Monthly Trade Drawback Calls 18-000496 Update on Client Representative Restructuring ACE PRODUCTION Cargo Release Deployed this morning, 18-000497 08-23-18 Thurs August 23, 2018 Update: Section 301 Trade Remedies Assessed on China; Draw- 18-000498 back Claims Intermittent ACE Portal Unavailability Friday morning, August 31, 18-000500 1-3am ET Updated ACE Entry Summary Query CATAIR Implementation 08-28-18 18-000501 Guide Posted Update: Import Restrictions on Certain Mexican Fish and Fish 18-000502 Products FDA Scheduled Maintenance Saturday, September 1, 2018, 3AM 08-29-18 18-000503 to 6AM EDT Deadline for Filing GSP Retroactive Duty Refund Request - Sep- 18-000505 tember 19, 2018 08-30-18 Temporary Limitation in ACE Reports for Upgrade to SAP Busi- 18-000506 ness Objects Version 4.2 18-000507 Updated PE/PX Document ACE CERTIFICATION FQ deployment, Saturday Sept 1, 2018 18-000508 @2200 ET 08-31-18 18-000510 Truck Manifest EDI issues Craft Beverage Modernization Act (CBMA) Entry Summary Flag 18-000511 and CATAIR Publication 18-000512 RESOLVED: Truck Manifest EDI issues

Foreign Trade Zones The following documents were published in the Federal Register by the Foreign- Trade Zones Board:

F.R. Date Document Foreign-Trade Zone 163 -- Ponce, Puerto Rico; Application for Subzone; 08-01-18 Liquilux Gas Corporation; Ponce, Puerto Rico [S-106-2018] Foreign-Trade Zone 18—San Jose, California; Notification of Proposed Pro- duction Activity; Tesla, Inc. (Electric Passenger Vehicles and Components); Fremont and Palo Alto, California [B–49–2018] Foreign-Trade Zone 81— Portsmouth, New Hampshire; Authorization of Pro- duction Activity Textiles Coated International Inc. (Polytetrafluoroethylene Products) Manchester and Londonderry, New Hampshire [B–25–2018] Foreign-Trade Zone 249— Pensacola, Florida; Authorization of Production 08-14-18 Activity; GE Renewables North America, LLC (Wind Turbine Nacelles, Hubs, and Drivetrains); Pensacola, Florida [B–21–2018] Foreign-Trade Zone 81-Portsmouth, New Hampshire; Authorization of Produc- tion Activity; Albany Safran Composites LLC; (Carbon Fiber Composite Aircraft Engine Parts); Rochester, New Hampshire [B-27-2018] Foreign-Trade Zone 293—Limon, Colorado; Authorization of Production Activi- ty Laser Galicia America LLC (Bending and Assembly of Trafo Wall); Aurora, Colorado [B–24–2018] Foreign-Trade Zone 38 – Spartanburg, South Carolina; Authorization of Pro- 08-15-18 duction Activity: AFL Telecommunications, LLC (Optical Cable for Data Trans- fer) Duncan, South Carolina [B-26-2018] 08-20-18 Foreign-Trade Zone 41 – Milwaukee, Wisconsin: Notification of Proposed Pro-

International Trade Compliance Update | September 2018 36

Baker McKenzie

F.R. Date Document duction Activity: Generac Power Systems, Inc. (Outdoor Power, Pumps, and Lawn and Garden Equipment) Jefferson and Whitewater, Wisconsin [B-50- 2018] Foreign-Trade Zone 189 – Kent/Ottawa/Muskegon Counties, Michigan Notifica- tion of Proposed Production Activity Helix Steel (Twisted Steel Micro Rebar) Grand Rapids, Michigan [B-51-2018] Additional Production Authority Not Approved: The Coleman Company, Inc. 08-22-18 Subzone 119I (Textile-Based Personal Flotation Devices) Sauk Rapids, Minne- sota [FTZ Board Order No. 2056] Foreign-Trade Zone 78 – Nashville, Tennessee; Application for Subzone: 08-24-18 Calsonic Kansei North America, Shelbyville and Lewisburg, Tennessee [B-52- 2018] Foreign-Trade Zone 259 – Koochiching County, Minnesota; Application for 08-31-18 Subzone; Digi-Key Corporation Thief River Falls, Minnesota [S-134-2018)

Treasury, Commerce, Homeland Security and State meetings and notices related to trade AGENCIES: BIS = BUREAU OF INDUSTRY AND SECURITY; FINCEN = FINANCIAL CRIMES ENFORCE- MENT NETWORK; ITA: INTERNATIONAL TRADE ADMINISTRATION; NIST- NATIONAL INSTITUTE OF STANDARDS AND TECHNOLOGY; OFAC= OFFICE OF FOREIGN ASSETS CONTROL; DHS= HOME- LAND SECURITY; STATE=DEPARTMENT OF STATE. [Note: Only meetings which occur after scheduled distribution of this Update are listed.]

F.R. Date Subject 08-06-18 ITA: District Export Council Nomination Opportunity (N) BIS: Emerging Technology Technical Advisory Committee (ETTAC); Notice of Recruitment of Private-Sector Members (N) 08-08-18 ITA: Quarterly Update to Annual Listing of Foreign Government Subsidies on Articles of Cheese Subject to an In-Quota Rate of Duty (N) STATE: Defense Trade Advisory Group; Notice of Open Meeting [Public Notice: 10490] (N) [Oct. 25, 2018] 08-09-18 STATE: Industry Advisory Group: Notice of Open Meeting [Public Notice: 10482] (N) [Sept. 21, 2018] ITA: Call for Applications for the International Buyer Program Quarters 2 and 3 Calendar Year 2019 [Docket No.: 180719677-8677-01] (N) 08-21-18 ITA: Call for Applications for the International Buyer Program Select for Quarters 2 and 3 Calendar Year 2019 [Docket No.: 180719676-8676-01] (N) ITA: U.S. Department of Commerce Trade Finance Advisory Council - Notice of 08-22-18 renewal and solicitation of nominations for membership (N) COMMERCE: Submission for OMB Review; Comment Request; Procedures for Submitting Request for Objections from the Section 232 National Security Ad- 08-23-18 justments of Imports of Aluminum and Steel [OMB Control No. 0694-0138] (N) BIS: Materials Technical Advisory Committee Notice of Partially Closed Meeting (N/H) [Sept. 6, 2018] COMMERCE: Submission for OMB Review; Comment Request; Procedures for 08-24-18 Submitting Request for Exclusions from the Section 232 National Security Ad- justments of Imports of Aluminum and Steel [OMB Control No. 0694-0139] (N) BIS: Proposed Information Collection; Comment Request; Chemical Weapons Convention Provisions of the Export Administration Regulations (N) ITA: Trade Fair Certification (TFC) Program: Notice of Change of Application 08-29-18 Deadline and Mailing Address [Docket No.: 180806732-8732-01] (N) STATE: Determination Under Section 7012 of the Department of State, Foreign Operations, and Related Programs Appropriations Act, 2018 Relating to Assis- tance to Somalia [Public Notice: 10523] (N) BIS: Regulations and Procedures Technical Advisory Committee; Notice of Par- 08-30-18 tially Closed Meeting (N) [Sept. 25, 2018] 08-31-18 BIS: Transportation and Related Equipment Technical Advisory Committee;

International Trade Compliance Update | September 2018 37

Baker McKenzie

F.R. Date Subject Notice of Partially Closed Meeting (N) [Sept. 26, 2018]

US Government to impose possible significant new sanctions on Russia for use of nerve agent in UK On August 9, 2018, the US Department of State issued a press release indicating that the US Government will be imposing new sanctions on Russia for the use of a “Novichok” nerve agent in an attempt to assassinate UK citizen Sergei Skripal and his daughter Yulia Skripal, based on its August 6, 2018, determination under the Chemical and Biological Weapons Control and Warfare Elimination Act of 1991 (“CBW Act”) that the Russian Government has used chemical or biological weapons in violation of international law or has used lethal chemical or biological weapons against its own nationals. The CBW Act requires the President to impose sanctions on a foreign country with respect to which such a determination has been made.

Key takeaway: The impact of the initial CBW Act sanctions (which will be imposed on or around August 22, 2018) on US and non-US companies doing business in or with Russia may be limited given existing US export controls. Howev- er, if imposed without waivers, the possible additional CBW Act sanctions that could become effective in late November 2018 (which may include broad US export and import bans, prohibitions on US banks loaning money to the Russian Government, and a suspension on air transportation to and from the United States for air carriers directly or indirectly owned by the Russian Government) would represent a significant escalation in US Russia sanctions substantially impacting both US and non-US companies doing business in or with Russia. The CBW Act does have certain contract sanctity provisions such that the impact of the possible additional sanctions with respect to existing contracts may be more limited.

Initial Sanctions

The initial new sanctions will take effect upon publication of a notice in the Federal Register, expected on or around August 22, 2018. Such initial sanctions under the CBW Act must include termination of foreign aid assistance, limits on arms sales and financing of arms, denial of US Government credit or other financial assistance, and prohibition on certain exports including national security-sensitive goods and technology.

Notably, application of these initial sanctions can be waived in whole or in part if the President (i) determines that such waiver is in the national security interests of the United States or that there has been a fundamental change in the leadership and policies of Russia and (ii) makes certain certifications/reports to Con- gress in advance of such waiver. While not certain, given that the US Department of State’s press release mentions the 15-day congressional notification period, it may be that the initial sanctions will be subject to at least partial waivers. In addition, there are already significant export controls with respect to arms and national-security sensitive goods in place with respect to Russia such that, even assuming full application of these sanctions occurs, such additional export controls will likely be of limited additional impact.

Issuance of at least partial waivers of CBW Act sanctions is not unprecedented. For example, when CBW Act sanctions were imposed on Syria in 2013, the ap-

International Trade Compliance Update | September 2018 38

Baker McKenzie

plication of such sanctions was partially waived with respect to activities in furtherance of US policies regarding the Syrian conflict.

Possible Significant Additional Sanctions

Additional significant sanctions are possible unless, within 3 months after making the determination under the CBW Act (likely on or around November 22, 2018), the President certifies to Congress that Russia (i) is no longer using chemical or biological weapons in violation of international law or using lethal chemical or biological weapons against its own nationals, (ii) has provided reliable assurances that it will not in the future engage in any such activities, and (iii) is willing to allow on-site inspections by UN or other observers. The additional sanctions required by the CBW Act in this instance are three or more of the following:

• Export ban with respect to all goods and technology except for food and agricultural commodities. • Import ban: a ban on importation into the United States of articles grown, produced, or manufactured in Russia.

• Air transportation ban: suspension of authority of air carriers directly or indirectly owned by the Russian government to engage in air transportation to or from the United States.

• Bank loan prohibition: US banks could be prohibited from making any loan or providing credit to the Russian Government except with respect to the purchase of food and agricultural commodities • Multilateral development bank assistance: the United States would oppose loans or financial or technical assistance to Russia by international financial institutions. • Diplomatic relations: downgrade or suspension of diplomatic relations between the United States and Russia.

Importantly, such sanctions are subject to the same waiver process as the initial sanctions, such that it is possible that, even if imposed, the application of the sanctions could be wholly or partially waived.

Please watch our Trade Sanctions and Export Controls blog for further developments on both the initial and possible additional sanctions. For additional information, please contact the authors, Paul E. Amberg and Andrea Tovar, or any member of the US Outbound team with whom you normally work.

State continues temporary modification of Category XI of the US Munitions List On August 30, 2018, the Department of State published in the Federal Register a final rule [Public Notice: 10486] temporarily modifying paragraph (b) in Category XI of the United States Munitions List (USML). State with its interagency partners, continues to develop a long term solution for USML Category XI(b). How- ever, that solution will not be in place when the current temporary modification expires on August 30, 2018. Therefore, State has determined, for the national security and foreign policy of the United States and in the best interest of the US defense industry, to publish a final rule that extends the temporary modification of USML XI(b) for one year, to August 30, 2019, to allow it to be revised as part of the wholesale revision of USML Category XI. On February 12, 2018, State published a Notice of Inquiry (83 Fed. Re. 5970) requesting public comment on USML Categories V, X and XI. State and the interagency partners are reviewing the public comments submitted in response, and State is drafting a proposed rule

International Trade Compliance Update | September 2018 39

Baker McKenzie

setting out revised versions of the three categories for public comment. Extend- ing the temporary revisions of USML Category XI(b) now will allow the US government to finalize its review of USML Category XI, with rulemaking to follow, to include any further modifications to USML Category XI paragraph (b) as may be warranted.

Amendatory instructions 1 and 2 are effective August 30, 2018. Amendatory instruction No. 3 is effective August 30, 2019.

BIS revises EAR based on 2017 Missile Technology Control Re- gime Plenary Agreements On August 30, 2018, the Bureau of Industry and Security published in the Feder- al Register a final rule [Docket No. 170906871-7871-01] amending the Export Administration Regulations (EAR) to reflect changes to the Missile Technology Control Regime (MTCR) Annex that were agreed to by MTCR member countries at the October 2017 Plenary in Dublin, Ireland, and the May 2017 Technical Ex- perts Meeting (TEM) in Stockholm, Sweden. The final rule revises seventeen Export Control Classification Numbers (ECCNs) to implement the changes that were agreed to at the meetings and to better align the missile technology (MT) controls on the Commerce Control List (CCL) with the MTCR Annex. For the actual revisions, please see the Federal Register document.

BIS seeks comments regarding controls on certain spraying or fogging systems and “parts” and “components” therefor On August 13, 2018, the Bureau of Industry and Security published in the Feder- al Register notice of inquiry [Docket No. 180227222–8222–01] regarding controls on certain spraying or fogging systems and “parts” and “components” therefor. Certain items identified on the Commerce Control List (CCL) are controlled for chemical/biological (CB) reasons, because they are identified on one of the common control lists maintained by the Australia Group (AG), which is a multilateral forum of countries (plus the European Union) that maintain export controls on specified chemicals, biological agents, and related equipment and technology that could be used in a chemical or biological weapons (CBW) program. Among the items subject to these CB controls are spraying or fogging systems described in Export Control Classification Number (ECCN) 2B352.i on the CCL. Through this notice, BIS is seeking public comments as part of a review of the effectiveness of its controls on these systems, and “parts” and “components” therefor, to ensure that the descriptions of these items on the CCL are clear, do not inadvertently control items in normal commercial use, accurately reflect CB-related technological capabilities and developments, and are consistent with the principal objective of the AG, which is to ensure that exports of certain chemicals, biological agents, and dual-use chemical and biological manufacturing facilities and equipment, do not contribute to the spread of chemical and biological weapons (CBW). This notice also requests public comments on potential alternatives to the current controls in ECCN 2B352.i.

Comments must be received by BIS no later than October 12, 2018

BIS amends EAR to recognize and implement India’s membership in the Wassenaar Arrangement On August 3, 2018, the Bureau of Industry and Security, Commerce (BIS) published in the Federal Register a final rule [Docket No. 180228229-8229-01] amending the Export Administration Regulations (EAR) to formally recognize and

International Trade Compliance Update | September 2018 40

Baker McKenzie

implement India’s membership in the Wassenaar Arrangement (Wassenaar or WA). Further, BIS removes India from Country Group A:6 and places it in Coun- try Group A:5. This action befits India’s status as a Major Defense Partner and recognizes the country’s membership in three of the four export control regimes: Missile Technology Control Regime (MTCR), WA and Australia Group (AG). This rule is another in the series of rules that implement reforms to which the United States and India mutually agreed to promote global nonproliferation, expand high technology cooperation and trade, and ultimately facilitate India’s full membership in the four multilateral export control regimes (Nuclear Suppliers Group, MTCR, WA, and AG). This rule also makes conforming amendments. The rule was effective on the date of publication.

BIS revises South Sudan export and reexport license requirements On August 3, 2018, the Bureau of Industry and Security, Commerce (BIS) published in the Federal Register a final rule [Docket No. 180228230-8230-01] amending the Export Administration Regulations (EAR) to conform to the De- partment of State’s (State) amendment of February 14, 2018 to the International Traffic in Arms Regulations (ITAR) that placed restrictions on exports of defense articles (and defense services) to the Republic of South Sudan (South Sudan). The State action reflected a policy determination by the Secretary of State that it was in the best interests of US foreign policy to impose such restrictions.

Consistent with the State action, in this amendment, BIS is updating the EAR to restrict the export and reexport of certain items on the Commerce Control List to South Sudan. Pursuant to established procedure, BIS adds South Sudan to the list of US embargoed countries under the EAR, a list drawn from the list of arms embargoes in the ITAR and State Federal Register notices, and adopts a restrictive license application review policy consistent with State’s review policy set forth in the ITAR. The rule was effective on the date of publication. See our earlier blog on the addition of 15 South Sudanese Parties to the Entity List following imposition of the arms embargo against South Sudan.

BIS amends Entity List On August 1, 2018, the Bureau of Industry and Security (BIS) published in the Federal Register a final rule [Docket No. 170714666-7666-01] that amends the Export Administration Regulations (EAR) by adding forty-four entities (eight entities and thirty-six subordinate institutions) to the Entity List. The entities that are being added to the Entity List have been determined by the US Government to be acting contrary to the national security or foreign policy interests of the United States. These entities will be listed on the Entity List under the destination of China. This rule also modifies one entry under China to provide additional addresses and names for the entity at issue.

Restrictive measures and additions to OFAC, State, BIS blocking orders, designations, sanctions and entity lists During the past month, the following notices adding, removing or continuing persons (including entities) to/from restrictive measures lists were published in the Federal Register by the Office of Foreign Assets Control (OFAC) or by the State Department (State) or the Bureau of Industry and Security (BIS):

F.R. Date Applicable orders BIS: Addition of Certain Entities; and Modification of Entry on the Entity List 08-01-18 [Docket No. 170714666-7666-01] (FR)

International Trade Compliance Update | September 2018 41

Baker McKenzie

F.R. Date Applicable orders

STATE: E.O. 13224 Designation of Abdul Rehman al-Dakhil, aka Dilshad Ah- mad, aka Danish Dilshad, aka Amantullah Ali, aka Amanatullah Ali, aka Amanat 08-06-18 Ali, aka Imanat Ullah Iqbal, aka ‘Abd al-Rahman al-Dakhil as a Specially Desig- nated Global Terrorist [Public Notice: 10488] (N) Notice of OFAC Sanctions Actions (N) [2 individuals] 08-07-18 Notice of OFAC Sanctions Actions (N) [2 individuals] Notice of OFAC Sanctions Actions (N) [8 individuals, 5 entities] Notice of OFAC Sanctions Actions Pursuant to 08-08-18 Directive One of Executive Order 13662 (N) [removal] Notice of OFAC Sanctions Actions (N) [1 individual, 4 entities] STATE: Review of the Designation as a Foreign Terrorist Organization of Abu Sayyaf Group (and Other Aliases) [Public Notice: 10509] (N) STATE: Review of the Designation as a Foreign Terrorist Organization of Boko 08-17-18 Haram (and Other Aliases) [Public Notice: 10510] (N) STATE: E.O. 13224 Designation of Qassim Abdullah Ali Ahmed, aka Qassim al- Muamen, aka Qassim Al Muamen, aka Qassim Abdullah Ali, aka Qassim Ab- dullah as a Specially Designated Global Terrorist [Public Notice: 10507] (N) 08-23-18 OFAC: Notice of OFAC Sanctions Actions (N) [1 individual, 3 entities] OFAC: Notice of OFAC Sanctions Actions (N) [2 individuals, 2 entities] 08-24-18 OFAC: Notice of OFAC Sanctions Actions (N) [2 individuals, 6, entities]

Orders denying export privileges During the past month, the following orders were published:

F.R. Date Subject BIS: In the Matter of: Narender Sharma - Order Activating Suspended Portion of 08-03-18 Civil Penalty and Activating Suspended Denial of Export Privileges Against Nar- ender Sharma and Hydel Engineering Products [Docket Number 17-BIS-0005] 08-20-18 BIS: In the Matter of Alex Bryukhov – Order Denying Export Privileges

FTC adopts Guides for the Jewelry, Precious Metals, and Pewter Industries On August 16, 2018, the Federal Trade Commission (FTC) published in the Fed- eral Register a final rule adopting revised Guides for the Jewelry, Precious Met- als, and Pewter Industries (“Jewelry Guides” or “Guides”). The Federal Register document summarizes the FTC’s revisions to the previous Guides and includes the final Guides as revised. Specifically, the FTC revised the following areas:

• surface application of precious metals; • alloys with precious metals in amounts below minimum thresholds; • products containing more than one precious metal; • composite gemstone products; • varietals; • “cultured” diamonds; • qualifying claims about man-made gemstones; • pearl treatment disclosures; • use of the term “gem”; • misleading illustrations; • diamond definition; and • exemptions recognized in the assay for gold, silver, and platinum.

International Trade Compliance Update | September 2018 42

Baker McKenzie

Readers can find the FTC’s complete analysis in the Statement of Basis and Purpose (“SBP”) on the FTC’s website here.

FTC and CPSC Federal Register documents The following Federal Trade Commission (FTC) and Consumer Product Safety Commission (CPSC) documents which may be of interest to importers were published Federal Register during the past month:

F.R. Date Subject 08-16-18 FTC: Guides for the Jewelry, Precious Metals, and Pewter Industries (FR)

FDA Federal Register documents The FDA has posted the following Federal Register guides, notices or documents which may be of interest to international traders:

F.R. Date Subject Process to Request a Review of Food and Drug Administration's Decision Not to Issue Certain Export Certificates for Devices; Draft Guidance for Industry and 08-17-18 Food and Drug Administration Staff; Availability [Docket No. FDA-2018-D-2310] (N) Questions and Answers Regarding Food Facility Registration (Seventh Edition); Guidance for Industry; Availability [Docket No. FDA-2012-D-1002] (N) 08-20-18 Supplemental Questions and Answers Regarding Food Facility Registration; Draft Guidance for Industry; Availability [Docket No. FDA-2012-D-1002] (N) Food Safety Modernization Act Third-Party Certification Program User Fee Rate 08-30-18 for Fiscal Year 2019 [Docket No. FDA-2016-N-4119] (N)

FAS publishes dairy import license fee for 2019 TRQ On August 27, 2018, the Foreign Agricultural Service (FAS) published in the Federal Register a notice that announces a fee of $300 to be charged for the 2019 tariff-rate quota (TRQ) year for each license issued to a person or firm by the Department of Agriculture authorizing the importation of certain dairy articles, which are subject to tariff-rate quotas set forth in the Harmonized Tariff Schedule (HTS) of the United States.

Morocco to accept US poultry and poultry products for first time On August 7, 2018, US Trade Representative Robert Lighthizer and US Secre- tary of Agriculture Sonny Perdue announced that the government of Morocco has agreed to allow commercial imports of US poultry meat and products into Moroc- co for the first time.

Morocco had prohibited imports of US poultry. Officials from the Office of the U.S. Trade Representative and the US Department of Agriculture worked with the Moroccan government to provide assurances on the safety of US poultry.

More details on requirements for exporting to Morocco are available from the USDA Food Safety and Inspection Service Export Library.

APHIS and other USDA notices issued During the past month, the Animal and Plant Health Inspection Service (APHIS) and other US Department of Agriculture (USDA) agencies issued the following Federal Register notices during the past month which may be of interest to inter-

International Trade Compliance Update | September 2018 43

Baker McKenzie

national traders. [USDA=OFFICE OF THE SECRETARY, FAS=FOREIGN AGRICULTURAL SERVICE, AMS=AGRICULTURAL MARKETING SERVICE, FSIS=FOOD SAFETY INSPEC- TION SERVICE, CCC=COMMODITY CREDIT CORPORATION]:

F.R. Date Subject AMS: United States Classes, Standards, and Grades for Poultry [Docket No. 08-06-18 AMS-LP-18-0050] (N) FSIS: Trade and Foreign Agriculture Affairs; Codex Alimentarius Commission: 08-08-18 International Standard-Setting Activities [Docket No. FSIS-2018-0013] (N) AMS: United States Standards for Grades of Processed Vegetables [Document 08-13-18 Number AMS–FV–14–0088, SC– 18–328] (N) AMS: Cotton Board Rules and Regulations: Adjusting Supplemental Assess- ment on Imports (2018 Amendments) [Doc. # AMS-CN-18-0013] (FR) 08-17-18 AMS: United States Standards for Grades of Pork Carcasses [Docket No. AMS- LPS-17-0046] (N) FAS: Adjustment of Appendices Under the Dairy Tariff-Rate Import Quota Li- censing Regulation for the 2018 Tariff-Rate Quota Year (N) 08-27-18 FAS: Assessment of Fees for Dairy Import Licenses for the 2019 Tariff-Rate Import Quota Year (N) CCC: Agricultural Trade Promotion Program (FR) CCC: Market Facilitation Program (FR) 08-30-18 CCC: Notice of Funds Availability (NOFA); Market Facilitation Program (MFP) Payments to Producers (N) APHIS: Concurrence with OIE Risk Designations for Bovine Spongiform En- 08-31-18 cephalopathy [Docket No. APHIS-2018-0012] (N)

FAS GAIN reports Below is a partial list of Global Agriculture Information Network (GAIN) reports that were recently issued by the US Foreign Agriculture Service (FAS) in the Food and Agricultural Import Regulations and Standards (FAIRS) series as well as other reports related to import or export requirements. These provide valuable information on regulatory standards, export guides, changes in tariffs, and MRL (maximum residue limits). Information about, and access to, other GAIN reports may be found at the FAS GAIN reports website.

• Canada - Canada to Phase Out Two More Neonicotinoids • China - China Announces Supplemental Tariffs in Response to U.S. 301 Tariffs • China - China Announces Temporary Anti-Dumping Duties on Brazilian Poultry • China - China Updates List of U.S. Products Subject to Additional Tariffs • China - China Implements Schedule II of the 301 Retaliatory Tariffs • EU - EU Establishes Trade-Facilitative MRL for Fosetyl-Al on Tree Nuts_Brussels • Germany - Germany - Applicable Maximum Cadmium Level in Sunflower Kernels • India - Tariff Increases on U.S. Agricultural Products Delayed Until Sept 18 • India - Compliance Timeline Provided for Ingredients under Functional Foods • India - Draft Amendments in Contaminants Toxins and Residues Regulation • India - FSSAI Recognizes Technological Need of Lecithin in Infant Formula • India - India Invites WTO Member Comments on Inclusion of Processing Aids • India - Organic Sticker Temporarily Allowed on Imported Organic Products • India - WTO Member Comments Invited on Draft Standards for Synthetic Syrups • Indonesia - Dairy Import Requirements Revision • Japan - Free Trade Agreements Pose Challenges for U.S. Processed Products

International Trade Compliance Update | September 2018 44

Baker McKenzie

• Japan - Japan Introduces Standards for Liquid Infant Formula • Japan - Japan Revising Domestic Pesticide Registration System • Japan - Japan to Create Food Packaging Materials Positive List • Japan - Japan Trade Agreements to Present Challenges for U.S. Vegetables • Japan - Japanese Free Trade Agreements to Affect U.S. Fruit Competitiveness • Japan - New FTA Concessions Reduce U.S. Barley Opportunities • Japan - Proposed Deletion of 2.4-D Residue Standards Notified to WTO • Japan - Proposed Modifications to Gibberellin MRLs Notified to WTO • Japan - U.S. Nuts Less Competitive Under New Japan Free Trade Agreements • Kuwait - Update on Kuwait Bans on U.S. Food Products • Morocco - Lists of Undesirable Substances and Limited Uses of Feed Ingredients • Myanmar/Burma - Myanmar Companies Law and Online Registration • Netherlands - Dutch Customs and EU Retaliatory Tariffs • Panama - Panama activates TPA's Agricultural Special Safeguard • Poland - New Polish Draft GE Labeling Legislation • Russia - Russia Extended Food Import Ban through End 2019 • Russia - Draft Amendments to Sanitary Requirements Notified to WTO • South Africa - South Africa to Finalize Establishing a Border Management Authority • Spain - FAIRS Report • Spain – FAIRS Report • Taiwan - Exporter Guide • Thailand - Thailand Bans the Use of Partially Hydrogenated Oils in Foods • Turkey - Turkey Announces Second Round of Additional Levies on U.S. Products

Additional Federal Register documents The following Federal Register documents which may be of interest to international traders were published during the past month by various Federal agencies:

F.R. Date Subject

ENVIRONMENTAL PROTECTION AGENCY (EPA) : Significant New Use Rules on Certain Chemical Substances [EPA-HQ-OPPT-2017-0366; FRL-9970-23] (FR) EPA: Significant New Use Rules on Certain Chemical Substances [EPA-HQ- 08-01-18 OPPT-2017-0366; FRL-9981-16] (PR) EPA: Titanium dioxide; Exemption from the Requirement of a Tolerance [EPA- HQ-OPP-2018-0150; FRL-9980-39] (FR) ENERGY: Energy Conservation Program: Energy Conservation Standards for 08-03-18 Manufactured Housing; Notice of data availability; request for information [EERE–2009-BT–BC–0021] (N/RFI) EPA: Address Change for Waste Import-Export Submittals from the Office of Federal Activities to the Office of Resource Conservation and Recovery [FRL- 08-06-18 9981-90-OLEM] (FR) EPA: Pesticide Product Registration; Receipt of Applications for New Uses [EPA-HQ-OPP-2017-0273; FRL-9980-85] (N) EPA: Problem Formulations for the Risk Evaluations to be Conducted for the First Ten Chemical Substances under the Toxic Substances Control Act, and 08-07-18 Application of Systematic Review in TSCA Risk Evaluations; Extension of Comment Period [EPA-HQ-OPPT-2018-0210; FRL-9981-54] (N) EPA: Spinetoram; Pesticide Tolerances [EPA-HQ-OPP-2017-0352; FRL-9978- 08-08-18 83] (FR)

International Trade Compliance Update | September 2018 45

Baker McKenzie

F.R. Date Subject EPA: Registration Review Proposed Interim Decisions for Several Pesticides; Notice of Availability [EPA-HQ-OPP-2017-0750; FRL-9981-20] (N) EPA: Cerevisane (cell walls of Saccharomyces cerevisiae strain LAS117); Ex- emption from the Requirement of a Tolerance [EPA-HQ-OPP-2017-0315; FRL- 9980-51] (FR) EPA: Registration Review; Draft Human Health and/or Ecological Risk As- 08-09-18 sessments for Several Pesticides; Notice of Availability [EPA-HQ-OPP-2017- 0720; FRL-9981-14] (N) EPA: Interim Registration Review Decisions for Several Pesticides; Notice of Availability [EPA-HQ-OPP-2017-0751; FRL-9981-15] (N) EPA: Notice of Receipt of Requests To Voluntarily Cancel Certain Pesticide Registrations and Amend Registrations To Terminate Certain Uses [EPA–HQ– OPP–2018–0014; FRL–9980–44] (N) EPA: Picoxystrobin; Pesticide Tolerances [EPA–HQ–OPP–2017–0429; FRL– 08-10-18 9980–47] (FR) GENERAL SERVICES ADMINISTRATION (GSA): Notice of Availability and An- nouncement of Meeting for the Draft Environmental Impact Statement for the Otay Mesa Port of Entry, San Diego, California [Notice-PBS–2018–06; Docket No. 2018– 0002; Sequence No. 18] (N/H) ENERGY: Energy Conservation Program: Test Procedures for Central Air Condi- tioners and Heat Pumps [EERE–2016–BT–TP–0029] (FR) Lifting of administrative stay. 08-13-18 FISH AND WILDLIFE SERVICE (FWS): Endangered and Threatened Wildlife and Plants; Listing the Hyacinth Macaw [Docket No. FWS–R9–ES–2012–0013; 4500030115] (FR) EPA: Certain New Chemical Substances; Receipt and Status Information for May 2018 [EPA–HQ–OPPT–2018–0404; FRL–9981–43] (N) 08-14-18 EPA: Receipt of Several Pesticide Petitions Filed for Residues of Pesticide Chemicals in or on Various Commodities [EPA–HQ–OPPT–2018–0404; FRL– 9981–43] (N) US COAST GUARD (USCG): Lifejacket Approval Harmonization [Docket No. USCG-2018-0565] (N/RFC) EPA: Significant New Use Rules on Certain Chemical Substances [EPA-HQ- 08-17-18 OPPT-2017-0414; FRL-9971-37] (FR) EPA: Significant New Use Rules on Certain Chemical Substances [EPA-HQ- OPPT-2017-0414; FRL-9981-82] (PR) DRUG ENFORCEMENT ADMINISTRATION (DEA): Proposed Aggregate Production Quotas for Schedule I and II Controlled Substances and Assessment of Annual 08-20-18 Needs for the List I Chemicals Ephedrine, Pseudoephedrine, and Phenylpro- panolamine for 2019 [Docket No. DEA-488P] (N/RFC) DEA: Proposed Adjustments to the Aggregate Production Quotas for Schedule I and II Controlled Substances and Assessment of Annual Needs for the List I 08-23-18 Chemicals: Ephedrine, Pseudoephedrine, and Phenylpropanolamine for 2018 [Docket No. DEA-471P] (N/RFC) EPA, NATIONAL HIGHWAY TRAFFIC SAFETY ADMINISTRATION (NHTSA): The Safer Affordable Fuel-Efficient (SAFE) Vehicles Rule for Model Years 2021-2026 Passenger Cars and Light Trucks [NHTSA-2018-0067; EPA-HQ-OAR-2018- 0283; FRL-9981-74-OAR] (H) EPA, NHTSA: The Safer Affordable Fuel-Efficient (SAFE) Vehicles Rule for Model Years 2021–2026 Passenger Cars and Light Trucks [NHTSA–2018– 0067; EPA–HQ–OAR–2018– 0283; FRL–9981–74–OAR] (PR) DEPARTMENT OF DEFENSE (DOD): Defense Federal Acquisition Regulation Sup- 08-24-18 plement: Sunset of Provision Relating to the Procurement of Certain Goods (DFARS Case 2018-D007) [Docket DARS-2018-0028] (PR) DoD: Defense Federal Acquisition Regulation Supplement: Restrictions on Acquisitions from Foreign Sources (DFARS Case 2017-D011) [Docket DARS- 2018-0004] (PR) EPA: Lignosulfonic Acid, Calcium, comp. with 1,6 hexanediamine polymer with Guanidine Hydrochloride (1:1); Tolerance Exemption [EPA-HQ-OPP-2017- 0520; FRL-9979-94] (FR)

International Trade Compliance Update | September 2018 46

Baker McKenzie

F.R. Date Subject EPA: Zinc Oxide; Exemption from the Requirement of a Tolerance [EPA-HQ- OPP-2017-0574; FRL-9978-36] (FR) EPA: Receipt of Several Pesticide Petitions Filed for Residues of Pesticide Chemicals in or on Various Commodities [EPA-HQ-OPP-2018-0577; FRL- 9982-37] (N) GSA: Public Building Service (PBS); Notice of Availability and Announcement of Meeting for the Draft Environmental Impact Statement for the Otay Mesa Port of Entry, San Diego, California; Correction [Notice-PBS-2018-08; Docket No. 2018-0002; Sequence No. 23] (N/C) EPA: Significant New Use Rules on Certain Chemical Substances [EPA–HQ– OPPT–2017–0560; FRL–9982–78] (PR) EPA: Significant New Use Rules on Certain Chemical Substances [EPA–HQ– OPPT–2017–0464; FRL–9982–25] (PR) 08-27-18 EPA: Significant New Use Rules on Certain Chemical Substances [EPA–HQ– OPPT–2017–0560; FRL–9982–77] (FR) EPA: Significant New Use Rules on Certain Chemical Substances [EPA–HQ– OPPT–2017–0464; FRL–9982–24] (FR) EPA: Aspartic Acid, N-(1,2-dicarboxyethyl)-, Tetrasodium Salt; Exemption 08-28-18 From the Requirement of a Tolerance [EPA–HQ–OPP–2017–0474; FRL– 9981–27] (FR) DoD DFARS: Defense Federal Acquisition Regulation Supplement: Inapplica- bility of Certain Laws and Regulations to Commercial Items (DFARS Case 08-29-18 2017-D010); Reopening of Comment Period [Docket DARS-2018-0035] (PR/RO) DEA: Schedules of Controlled Substances: Temporary Placement of N- Ethylpentylone in Schedule I [Docket No. DEA-482] Temporary amendment; 08-31-18 temporary scheduling order. EPA: Pesticide Product Registration; Receipt of Applications for New Active Ingredients [EPA-HQ-OPP-2018-0578; FRL-9982-38] (N)

Antidumping and countervailing duty cases See separate Antidumping Countervailing Duty and Safeguards Investiga- tions, Orders & Reviews section below. The Americas - South America

ARGENTINA Boletin Oficial publications The following Decrees, Administrative Decisions and Resolutions (Res.) which may be of interest to international traders were published in the Boletin Oficial de la Republica Argentina (Official Gazette) or the Customs Bulletin during the period covered by this Update [Unofficial translation].

BO Date Subject

Decree 721 /2018 (02-08-18) DECTO-2018-721-APN-PTE – “International Fair of 03-08-18 Villa Gesell” - International Fair – exemption from the payment of the import duties and other fees PRODUCTION/COMMERCE: Resolution 459/2018 (03-08-18) RESOL-2018-459- 07-08-18 APN-SECC # MP regarding Drawback Decree 737 /2018 (08-08-18) DECTO-2018-737-APN-PTE – “41 ° COAS Nations Fair 2018”. International Fair – exemption from the payment of the import duties and other fees. 09-08-18 Decree 728/2018 (08-08-18) DECTO-2018-728-APN-PTE – “Intersec Buenos Aires - International Exhibition of Security, Fire Protection, Electronic Security, Industrial and Personal Protection” International Fair – exemption from the

International Trade Compliance Update | September 2018 47

Baker McKenzie

BO Date Subject payment of import duties and and other fees FEDERAL ADMINISTRATION OF PUBLIC REVENUE (AFIP): General Resolution 4293 13-08-18 (10-08-18) Import. Merchandise Identification Regime. Resolution No. 2,522 / 87 (ANA), its amendments and complementary. Its modification Decree 757/2018 (14-08-18) Common Nomenclature of Mercosur - DECTO- 15-08-18 2018-757-APN-PTE - Tariff positions PRODUCTION/COMMERCE: Resolution № 484/2018 (15-08-18) RESOL-2018-484- 16-08-18 APN-SECC #MP relating to technical requirements for furniture [imports and domestic sales including labeling] Decree 763 /2018 (17-08-18) DECTO-2018-763-APN-PTE – International Fair “53º Agricultural, Livestock, Commercial, Industrial and Services Exhibition - Expo Tucumán 2018”. Exemption of the payment of the import duties and other taxes. Decree 767/2018 (17-08-18) DECTO-2018-767-APN-PTE –MERCOSUR Common Nomenclature – Modification of Decree 1126/2017. With annexes 21-08-18 PRODUCTION/COMMERCE: Resolution 492/2018 (16-08-18) RESOL-2018-492- APN-SECC # MP – Results of verification under Economic Complementation Agreement № 18 fiber-optics. PRODUCTION/COMMERCE: Resolution 494/2018 (16-08-18) RESOL-2018-494- APN-SECC # MP - Approve this Specific Technical Regulation that establishes the technical requirements of quality and safety, which must be met by the products identified as furniture PRODUCTION/COMMERCE-EXECUTING UNIT OF THE ARGENTINE SINGLE FOREIGN TRADE WINDOW REGIME: Administrative Decision 1535/2018 (24-08-18) DA- 27-08-18 2018-1535-APN-JGM AFIP: Gen. Res. № 4296 (23-08-18) Free Stores Regime. Resolution No. 4,483 / 82 (ANA) and its amendment. Modification AFIP and NATIONAL HEALTH AND AGRI-FOOD QUALITY SERVICE: Joint General 28-08-18 Resolution 4297 (24-08-18) Electronic Plant Traffic Document “DTV-e” [Ap- proval of the Electronic Plant Health Transit Document] AFIP: Gen. Res. № 4299 (28-08-18) Watchkeeper functions. Resolution No. 5,109 / 80 (ANA).Modification AFIP: Gen. Res. № 4300 (28-08-18) Removal Guide General Resolutions № 29-08-18 709 and 4.076-E. Modification [Articles 386 to 396 of the Customs Code] PRODUCTION/NATIONAL TRADE FACILITATION DIRECTORATE: Provision 14/2018 (27- 08-18) DI-2018-14-APN-DNFC # MP [Exclusion of tariff 6113.00.00.200W from certain requirements regarding listing composition] PRODUCTION/COMMERCE: Res. 507/2018 (27-08-18) RESOL-2018-507-APN- SECC # MP [Processing of Import Licenses] PRODUCTION/COMMERCE: Res. 511/2018 (29-08-18) RESOL-2018-511-APN- SECC # MP [Verification of Non-Preferential Origin – Taiwan] 31-08-18 PRODUCTION/COMMERCE: Res. 512/2018 (29-08-18) RESOL-2018-512-APN- SECC # MP [Verification of Non-Preferential Origin – Taiwan] PRODUCTION/COMMERCE: Res. 513/2018 (29-08-18) RESOL-2018-513-APN- SECC # MP [Verification of Non-Preferential Origin – Taiwan]

BRAZIL Diário Oficial da União publications The following notices, Ordinances (Portarias), Circulars and Resolutions of interest to international traders were published in the Diário Oficial da União (Official Gazette) during the period covered by this Update.

DOU Date Subject CAMEX Res. № 50 (03-08-18) amends the list of autoparts contained in An- nexes I and II of CAMEX Resolution 116 of December 18, 2014 08-08-18 CAMEX Res. № 51 (03-08-18) Alters the Brazilian List of Exceptions to the Mercosur Common External Tariff.

International Trade Compliance Update | September 2018 48

Baker McKenzie

DOU Date Subject CAMEX Res. № 52 (09-08-18) Adopts the Foreign Trade Regulatory Agenda of 10-08-18 Brazil for the biennium 2018-19 CAMEX Res. № 54 (10-08-18) changes to 0% (zero percent) the Import Tax rates on the IT and Telecommunication Goods it mentions, as Ex-Tariffs. 13-08-18 CAMEX Res. № 55 (10-08-18) changes to zero the Import Tax rates on the Capital Goods it mentions, in the condition of Ex-Tariffs. 14-08-18 Correction of CAMEX Res. № 52 17-08-18 Correction of CAMEX Res. № 50 CAMEX Res. № 57 (22-08-18) Grants temporary reduction in the rate of import 23-08-18 duty under Resolution n the 08/08 of the MERCOSUR Common Market Group

Antidumping and countervailing duty cases See separate Antidumping Countervailing Duty and Safeguards Investiga- tions, Orders & Reviews section below.

CHILE National Customs postings and Diario Oficial The following documents, which may be of interest to international traders were posted to the National Customs Service (NCS) website or published in the Diario Oficial de la República de Chile (Official Gazette) or [Partial list; Unofficial translation].

Date Subject

HACIENDA: Exempt Decree № 110, of 2018. - Sponsors and declares interna- 02-08-18 tional the LXXXVIII Agricultural, Livestock, Industrial and Commercial Exhibition of Temuco, Exposofo 2018 - International Agrifood Fair of the Araucanía HACIENDA: Exempt Decree № 236, of 2018. - Applies reductions of customs 16-08-18 duties for the importation of wheat and flour of wheat or morcajo (tranquillum) HACIENDA: Resolution № 3,316, of 2018.- Modifies Compendium of Customs Rules 17-08-18 HACIENDA: Extract of Exempt Resolution № 2852, of 2018.- Modifies Compendi- um of Customs Rules HACIENDA: Extract of Exempt Resolution № 64, of 2018.- Establishes a new procedure for the declaration that must be made by the importing, distributing 18-08-18 and commercializing companies of new motorized vehicles, in accordance with the provisions of the final clause of article 12 of decree law No. 3,063, of 1979, on Municipal Income HACIENDA: Exempt Decree 240, of 2018. - Applies rebates of customs duties for 24-08-18 the import of refined sugar grades 1 and 2, and refined sugar grades 3 and 4, and sub-standards HACIENDA: Exempt Decree No. 233, of 2018. - Declares International Fair to the Vyva 2018, Travel and Holidays 31-08-18 HACIENDA: Resolution number 396, of 2018.- Classification of general deposit warehouses according to the evaluation indicated

Classification opinions, advance rulings and classification valuation and origin decisions The National Customs Service has redesigned its website. Advance Classifica- tion Rulings (Resoluciones Anticipadas Clasificación) from 2010 to the present are available.

International Trade Compliance Update | September 2018 49

Baker McKenzie COLOMBIA TPTA information Information, on the Colombia-United States Trade Promotion Agreement including presentations, rules of origin and TRQ information (all in Spanish) may be found here. Sample (non-mandatory) Certificates of Origin are available here.

Tariff Classification Resolutions Tariff Classification Resolutions may be found here.

MinCIT, MinHacienda and DIAN Documents The following documents of interest to international traders were posted by the Ministry of Commerce, Industry and Tourism (MinCIT), Ministry of Finance (Haci- enda) or the National Directorate of Taxes and Customs (DIAN):

Date Subject

MINCIT: Circular 27 "Addition to annex 12 of circular 037 of 2016" [Subheading 8413.40.00.00] MINCIT: Circular 28 "Report of waste and waste without commercial value in the 03-08-18 presentation of demonstration studies of raw materials special systems of import and export" MINCIT: Circular 29 "Dumping and safeguards application" MINCIT: Circular 30 "Addition to annex 20 of circular 037 of 2016" [Subheadings 08-08-18 in 9027] DIAN: Circular 003253 Ad valorem charges applicable to agricultural products of 14-08-18 reference, their substitutes, agro-industrial products or by-products. DIAN: Circular 003260 Ad valorem charges applicable to agricultural products of 30-08-18 reference, their substitutes, agro-industrial products or by-products.

Asia-Pacific

[Please note that material pertaining to the Eurasian Economic Union (EAEU) and the Customs Union between Russia, Armenia, Belarus, Kazakhstan and the Kyrgyz Republic is shown under EUROPE.]

AUSTRALIA DHA notices and advices The following Department of Home Affairs (DHA, formerly Immigration and Bor- der Protection (DIBP)) Notices and Cargo advices (ACCA) were issued during the period covered by this Update:

Date Series and № Title DHA Notice № Amendments to the Customs (Prohibited Exports) Regula- 01-08-18 2018/27 tions 1958 – Schedule 2 Rotterdam Convention chemicals DHA Notice № Biannual indexation of customs duty rates for tobacco and 17-08-18 2018/28 tobacco products – 1 September 2018

Australian Tariff Precedents The Department of Immigration and Border Protection (DIBP) has published a List of Current Precedents, updated through 13 June 2017. Tariff Precedents are considered statements from Customs made to provide guidance on various clas-

International Trade Compliance Update | September 2018 50

Baker McKenzie

sification issues. New information and tariff classification guides can be found on Tariff Public Advice Products webpage

• Guide on the Importation of placebos and combinations of drugs and placebos for clinical trials includes change of legislation from 1 July 2018. Australian Gazettes The following documents were published in the Government Notices Gazette, the Tariff Concessions Gazette (TC) or other Gazettes as noted(dd-mm-yy):

Date Matter 27-07-18 Declaration under subsection 132B(1) of the Customs Act 1901 Notice of Substituted Rates of Customs Duty for Excise-Equivalent Goods - No- 01-08-18 tice (No. 3) 2018 TC 18-29 08-08-18 TC 18-30 15-08-18 TC 18-31 Charter of the United Nations Act 1945 Listing 2018 (No. 2) 16-08-18 Charter of the United Nations Act 1945 Listing Declaration (No. 3) 2018 22-08-18 TC 18-32 29-08-18 TC 18-33

Antidumping and countervailing duty cases See separate Antidumping Countervailing Duty and Safeguards Investiga- tions, Orders & Reviews section below.

CHINA (INCLUDING HONG KONG SAR) Tariffs on second batch of US originating goods announced On August 3, 2018, the Customs Tariff Commission of the State Council announced that additional tariffs of 5% to 25% will be applied to certain goods originating in the United States. The announcement states (translated from the Chi- nese which is the only official version):

State Council Customs and Tariff Committee Announcement [2018] No. 6 On July 11, 2018, the US government issued measures to impose tariffs on imports of about 200 billion US dollars of goods imported from China, and solicited public opinions on the measures. On August 2, the US announced that it would increase the tariff rate imposed on the above-mentioned 200 billion US dollars of goods from 10% to 25%. The US measures have deviated from the consensus of the two sides, leading to an escalation of trade friction between China and the United States, serious violations of relevant rules of the World Trade Organization, and damage to our national interests and people's interests. According to the “People's Republic of China Foreign Trade Law”, “People's Republic of China Import and Export Tariff Regulations” and other laws and regulations and the basic principles of international law, the State Council Customs Tariff Commission decided to impose tariffs on 5,207 tax items imported from the United States. The measure involves an import trade volume of approximately US$60 billion from the United States. The relevant matters are as follows: 1. Add 25% tariff to 2493 items of tax items listed in Annex 1, add 20% tariff to 1078 items of tax items listed in Annex 2, and impose 10% tariff on 974 items of goods listed in Annex 3. A 5% tariff is imposed on the 662 items of tax items listed in Annex 4. The specific product ranges are shown in Annexes 1 to 4. 2. For the imported goods listed in the annexes originating in the United States, the corresponding tariffs shall be levied on the basis of the current taxation method and

International Trade Compliance Update | September 2018 51

Baker McKenzie

applicable tariff rate. The current taxation, tax reduction and exemption policies shall remain unchanged, and the tariffs imposed shall not be reduced. 3. The calculation of relevant import taxes: Adding tariff tax = customs duty-paid price × increasing tariff rate Tariff = taxable duty calculated at current applicable tax rate + additional tariff The import value-added tax and consumption tax shall be calculated in accordance with relevant laws and regulations. 4. The implementation date will be announced separately. Attachment: 1. List of 25% tariff items for the United States 2. List of 20% tariff items for the United States 3. List of 10% tariff items for the United States 4. List of 5% tariff items for the United States

[Note: An unofficial translation has been prepared by the US Department of Agri- culture as part of its GAIN reports series and is available here, and an update is available here. On the Chinese version is official]

On August 8, the following notice was issued:

State Council Customs and Tariff Committee’s Notice concerning “Imposing Tariffs on Imports of Approximately $16 Billion from the United States” SCCTC Notice [2018] No.7 Pursuant to the “State Council Customs and Tariff Committee’s Notice concerning Imposing Tariffs on Imports of $50 Billion from the United States” (SCCTC Notice [2018] No.5), we are making the following announcement regarding the adjustment of the List II of the commodities from the United States that are subject to additional tariffs: 1. The commodities in List II from the United States that are subject to the additional tariffs should refer to the attachment of this public notice; the additional tariff will be imposed from 12:01, August 23, 2018. 2. Other matters are still implemented in accordance with the SCCTC Notice [2018] No. 5. Attachment: List II of the commodities from the United States that are subject to additional tariffs

On August 23, 2018, the People’s Republic of China's Ministry of Commerce (MOFCOM) implemented the tariffs listed in List II, originally announced on June 16 (see USDA report), then revised on August 8 (see updated USDA report). The Schedule II tariffs cover $16 billion USD of trade, with a tariff rate of 25 percent. Only a few agricultural and agricultural-related products are included in List II. U.S. exporters of the affected commodities should be aware that the new tariffs were effective August 23, and should check with local importers to verify changes in tariff treatment.

MOFCOM and GAC notices The following State Council Customs and Tariff Committee (SCCTC), Ministry of Commerce (MOFCOM) and General Administration of Customs (GAC) notices were posted during the period covered by this Update (mm-dd-yy):

Date Series and № Subject

08-01-18 GAC № 98 Announcement to remind the vast number of entry and

International Trade Compliance Update | September 2018 52

Baker McKenzie

Date Series and № Subject

exit personnel to pay attention to the health of international travel Announcement of the Customs Tariff Commission of 08-03-18 SCCTC. № 6, 2018 the State Council on the Tariffs on Certain Imported Goods (Second Batch) Originating in the United States Joint Announcement of the State Administration of Taxation of the Ministry of Finance No. 100 of 2018 07-24-18 GAC № 100 Announcement on the Pilot Reform of Printing for Cus- toms-Specific Payments Notice concerning “Imposing Tariffs on Imports of Ap- 08-08-18 SCCTC Notice № 7 proximately $16 Billion from the United States” Announcement on the quarantine requirements for the GAC № 101 import of fresh melon plants in Kyrgyzstan 08-09-18 Announcement on Preventing the Ebola Epidemic of GAC № 102 the Democratic Republic of the Congo from Entering China Announcement on the adjustment and release of the texts of the six regulations and legal documents of the 08-14-18 GAC № 103 Customs of the PRC on the Supervision of Goods Transit Announcement on matters related to the regulation of 08-13-18 GAC № 104 processing trade Announcement on Issues Concerning the Issuance of 08-17-18 GAC № 106 the Certificate of Origin of China and the Kimberley Process Certificate Announcement on Inspection and Quarantine Re- 08-16-18 GAC № 107 quirements for Imported Malaysian Maoyan Regulations on the Administration of Customs Statistics 08-17-18 GAC Reg. Order 242 of the PRC 08-22-18 GAC № 109 Announcement on "Internet + Appointment Clearance" Announcement on the quarantine requirements for GAC № 110 importing Mexican berry land and air transport 08-24-18 Announcement on Inspection and Quarantine Re- GAC № 111 quirements for Imported Cambodian Banana Plants List of Overseas Imported Enterprises of Imported Cot- 08-27-18 GAC № 112 ton on the Announcement of the Validity of the Regis- tration and the Renewal of the Registration Certificate

Antidumping and Countervailing Duty Cases See separate Antidumping Countervailing Duty and Safeguards Investiga- tions, Orders & Reviews section below.

Hong Kong Trade and Industry Department (TID) notices (dd-mm-yy)

Date Matter Strategic Trade Controls Circular 7/2018 Chemical Weapons (Convention) Ordi- 09-07-18 nance, Cap. 578 Anticipated Activities Involving Scheduled Chemicals in 2019 Strategic Trade Controls Circular 9/2018 Officers Authorized to Sign on Strategic Commodities Licences and Delivery Verification Certificates under Import and 15-08-18 Export Ordinance, Cap 60 Import and Export (Strategic Commodities) Regula- tions (pdf format)

INDIA Material in this section and the India Antidumping Countervailing Duty and Safe- guards Investigations section was prepared by Sonia Gupta of Ashok Dhingra Associates, Attorneys at Law, Gurgaon (Haryana), India

International Trade Compliance Update | September 2018 53

Baker McKenzie India notifies WTO of safeguard measure concerning imports of So- lar Cells whether or not assembled in modules or panels On 1 August, 2018, in pursuance of Article 12.1(B) and Article 9, Footnote 2 of the Agreement on Safeguards, India notified the Committee on Safeguards of proposal to impose safeguard measure concerning imports of Solar Cells whether or not assembled in modules or panels, which is circulated by it vide Notifica- tion Nos. G/SG/N/8/IND/31/Suppl.1 | G/SG/N/10/IND/22 | G/SG/N/11/IND/17/ Suppl.1 (dated 2 August, 2018) informing that the Director General of Trade Remedies, the competent authority in India, recommended to impose safeguard duty at rate of 25% ad valorem for first year, 20% ad valorem for first six months of second year and 15% ad valorem for last six months of second year.

Further, the Committee on Safeguards vide Notification Nos. G/SG/N/8/IND/31/Suppl.2 | G/SG/N/10/IND/22/Suppl.1 | G/SG/N/11/IND/17/Suppl.2 (dated 6 August, 2018) circulated India’s communication that definitive safeguard measures are effective from 30 July 2018, for a period of two years, progressively liberalised as provided below:

• 25% ad valorem minus Anti-dumping duty payable, if any, when imported during the period 30 July, 2018 to 29 July, 2019 (both days inclusive), • 20% ad valorem minus Anti-dumping duty payable, if any, when imported during the period 30 July, 2019 to 29 January, 2020 (both days inclusive), and • 15% ad valorem minus Anti-dumping duty payable, if any, when imported during the period 30 January, 2020 to 29 July, 2020 (both days inclusive).

India notifies WTO of draft Food Safety and Standards (Contami- nants, Toxins and Residues) Amendment Regulations, 2018 India notified the WTO Committee on Sanitary and Phytosanitary Measures concerning draft Food Safety and Standards (Contaminants, Toxins and Residues) Amendment Regulations, 2018 detailing limit of Metal Contaminant, Aflatoxin and Mycotoxin, which is circulated vide Notification No. G/SPS/N/IND/223 (dated 3 August, 2018) by the Committee on Sanitary and Phytosanitary Measures to in- vite comments from other Member States before 2 October, 2018.

Measures Concerning the Importation of Certain Agricultural Prod- ucts

On 20 August, 2018, in pursuance to recourse to Article 22.6 of the Understand- ing on Rules and Procedures Governing the Settlement of Disputes by India, the Arbitrator in India – Measures Concerning the Importation of Certain Agricultural Products addressed the Chairperson of the Dispute Settlement Body (DSB) regarding postponing issuance of its decision until October, 2018 on joint request of parties, which is circulated vide Notification No. WT/DS430/26 (dated 21 Au- gust, 2018).

Similarly, on 20 August, 2018, in pursuance to recourse to Article 21.5 of the Un- derstanding on Rules and Procedures Governing the Settlement of Disputes by India, the Panel in India – Measures Concerning the Importation of Certain Agri- cultural Products addressed the Chairperson of the DSB regarding delay in issuance of its Final Report until December, 2018 on joint request of parties, which is circulated vide Notification No. WT/DS430/27 (dated 21 August, 2018).

International Trade Compliance Update | September 2018 54

Baker McKenzie Other CBIC and DGFT notifications, circulars and instructions The Central Board of Indirect Taxes and Customs (CBIC) and the Directorate General of Foreign Trade (DGFT) issued the following notifications, circulars (Cir) and instructions during the period covered by this Update:

Date Series and № Subject

CBEC Non-Tariff Notifications Exchange rate notification providing conversion rate of for- 02-08-18 67/2018-Cus (NT) eign currencies to INR Courier Imports and Exports (Clearance) Regulations, 1998 03-08-18 68/2018-Cus (NT) amended Courier Imports and Exports (Electronic Declaration and 03-08-18 69/2018-Cus (NT) Processing) Regulations, 2010 amended Specified officers appointed as officer of Customs and as- 03-08-18 70/2018-Cus (NT) signed function of the Commissioners of Customs (Appeals) Tariff Notification regarding fixation of Tariff Value of Edible 14-08-18 71/2018-Cus (NT) Oils, Brass Scrap, Poppy Seeds, Areca Nut, Gold and Sil- ver Exchange rate notification providing conversion rate of 14-08-18 72/2018-Cus (NT) South African Rand to INR Notifies Customs (Finalisation of Provisional Assessment) 14-08-18 73/2018-Cus (NT) Regulations, 2018 Exchange rate notification providing conversion rate of for- 16-08-18 74/2018-Cus (NT) eign currencies to INR Area of jurisdiction of the Commissioner of Customs (Ap- 21-08-18 75/2018-Cus (NT) peals) changed Tariff Notification regarding fixation of Tariff Value of Edible 31-08-18 76/2018-Cus (NT) Oils, Brass Scrap, Poppy Seeds, Areca Nut, Gold and Sil- ver CBIC Tariff Notifications Notifies delay in implementation of retaliatory duties against 03-08-18 56/2018-Cus US until September 18, 2018 Prescribes effective rate of customs duty on Screw or SIM 07-08-18 57/2018-Cus socket / other mechanical items (metal) for cellular mobile phone Amendment to increase ad-valorem component of Basic 07-08-18 58/2018-Cus Customs duty (BCD) from 10% to 20% on 328 tariff lines of carpets, apparels and other textile products Exempts Basic Customs duty (BCD) & Integrated Goods and Service Tax (IGST) on goods imported for donation for 21-08-18 59/2018-Cus relief & rehabilitation of people of the State of Kerala affected by floods up to December 12, 2018 CBIC Circulars Standard operating procedures for discharge of bonds exe- 08-08-18 25/2018-Customs cuted by nominated agencies/ banks while importing gold for purpose of export of gold jewellery/ articles Simplification and rationalization of processing of Author- 10-08-18 26/2018-Customs ized Economic Operator (AEO) programme application Clarification regarding bank guarantee requirement for bond 14-08-18 27/2018-Customs executed by Export Oriented Units (EOUs) 30-08-18 28/2018-Customs Forwarding of samples for testing to outside laboratories Pilot implementation of paperless processing under Single 30-08-18 29/2018-Customs Window Interface for Facilitation of Trade (SWIFT) - upload- ing of supporting documents (eSANCHIT) in exports CBIC Instructions Provisional assessment of Safeguard duty on solar cells 13-08-18 12/2018-Customs whether or not assembled in modules or panels until further direction from CBIC Sharing of cases booked by Customs field formations under 29-08-18 13/2018-Customs Information Sharing Protocol with Central Economic Intelli-

International Trade Compliance Update | September 2018 55

Baker McKenzie

Date Series and № Subject gence Bureau (CEIB) DGFT Notifications Procedure for obtaining Importer Exporter Code (IEC) shift- 08-08-18 24/2015-2020 ed to Handbook of Procedures Import policy condition amended to allow import of Petcoke for only cement, lime kiln, calcium carbide and gasification 17-08-18 25/2015-2020 industries, when used as feed stock or in manufacturing process on Actual User Condition Export policy condition amended to bring export of Beach 21-08-18 26/2015-2020 Sand Minerals (BSM) under State Trading Enterprise (STE) and thus canalised through Indian Rare Earths Limited Import policy condition amended to revise policy for import of Biofuels from Free to Restricted and allow import of Bio- 21-08-18 27/2015-2020 fuels for non-fuel purpose subject to Actual User Condition in terms of National Biofuel Policy,2018 Annual limit of INR 1,00,00,000/-removed for exports on free of cost basis for export promotion for Status Holders and made 2% of average annual export realization during 27-08-18 28/2015-2020 preceding three licensing years with immediate effect and annual limit prescribed for export of Gems & Jewellery sector and articles of gold and precious metals sector not earlier prescribed Export policy condition amended to revise policy for export 28-08-18 29/2015-2020 of Biofuels from Free to Restricted in terms of National Poli- cy on Biofuels, 2018 Import policy condition amended to allow free import of Pe- 28-08-18 30/2015-2020 troleum Bitumen and other residues of petroleum oil or oils obtained from bituminous minerals 29-08-18 31/2015-2020 Restriction on import of peas withdrawn Import policy condition amended to restrict import of Peas 30-08-18 32/2015-2020 until September 30, 2018 DGFT Public Notices Addition to list of service sectors of Services Export Promo- 01-08-18 26/2015-2020 tion Council (SEPC) for issue of Registration Cum Member- ship Certificate (RCMC) Procedure for filing online application for IEC/modification in IEC/e-IEC laid. IEC to be system generated and require- 08-08-18 27/2015-2020 ment of Digital Signature for IEC applications done away with Enhancement of rates for specified HS codes in Appendix 08-08-18 28/2015-2020 3B, Table 2 under Merchandise Exports from India Scheme (MEIS) HS Code 63029100 eligible for incentives under MEIS for 1 09-08-18 29/2015-2020 April, 2015 to 30 September, 2015 One-time relaxation and condonation of delay in submission of installation certificate to Regional Authorities under Ex- 14-08-18 30/2015-2020 port Promotion Capital Goods (EPCG) Scheme for authorisations issued up to 31 March, 2015 without payment of any penalty EPCG authorisation holders permitted to shift capital goods imported during entire export obligation period to their other 29-08-18 31/2015-2020 units mentioned in IEC and RCMC subject to specified conditions Intimation to Regional Authorities regarding block-wise ful- 29-08-18 32/2015-2020 filment of Export Obligation under EPCG Scheme facilitated without digital signature

International Trade Compliance Update | September 2018 56

Baker McKenzie Note by the Secretariat concerning Anti-dumping actions In pursuance of reports submitted under Article 16.4 of the Uruguay Round Agreement by India and other Member States concerning preliminary and final Anti-dumping actions, the Committee on Anti-Dumping Practices circulated note vide Notification No. G/ADP/N/317 (dated 21 August, 2018).

Antidumping and countervailing duty cases See separate Antidumping Countervailing Duty and Safeguards Investiga- tions, Orders & Reviews section below.

LAOS Laos adopts 2017 ASEAN tariff code On August 23, Xinhua reported that Laos has adopted the 2017 ASEAN Harmo- nized Tariff Nomenclature. The adoption of the latest ASEAN tariff will facilitate trade between Laos and other ASEAN parties.

MALAYSIA Federal Government Gazette The following documents were published in the Warta Kerajaan Persekutuan - Federal Government Gazette

Date Matter P.U. (A) 169/2018 - Customs (Anti-Dumping Duties) (Expedited Review) (No. 2) 25-07-18 Order 2018 - Countervailing and Anti-Dumping Duties Act 1993, Customs Act 1967 P.U. (B) 485/2018 - Notification of Values of Crude Petroleum Oil Under Section 12 – Customs Act 1967 P.U. (B) 489/2018 - Notice of Initiation of Administrative Review of an Anti- 14-08-18 Dumping Duty With Regard to the Imports of Hot Rolled Coils Originating or Ex- ported From China and Indonesia - Countervailing and Anti-Dumping Duties Act 1993 P.U. (B) 497/2018 - Notification of Values of Crude Palm Oil Under Section 12 17-08-18 - Customs Act 1967 P.U. (B) 503/2018 - Notification of Values of Palm Kernel Under Section 12 - Cus- 27-08-18 toms Act 1967 P.U. (A) 201/2018 - Free Zones (Amendment) Regulations 2018 – Free Zones Act 1990 P.U. (A) 202/2018 - Free Zones (Exclusion of Goods And Services) (Amendment) Order 2018 - Free Zones Act 1990 28-08-18 P.U. (A) 204/2018 - Sales Tax (Customs Ruling) Regulations 2018 – Sales Tax Act 2018 P.U. (A) 211/2018 - Service Tax (Customs Ruling) Regulations 2018 - Service Tax Act 2018 P.U. (A) 215/2018 - Customs Regulations (Appeal Tribunal) (Amendment) 2018 - Customs Act 1967 P.U. (A) 216/2018 - Customs Duties (Exemption) (Amendment) (No. 3) Order 2018 - Customs Act 1967 P.U. (A) 217/2018 - Customs (Amendment) Regulations 2018 - Customs Act 1967 29-08-18 P.U. (A) 222/2018 - Customs (Prohibition Of Exports) (Amendment) (No. 2) Order 2018 - Customs Act 1967 P.U. (A) 223/2018 - Customs (Prohibition Of Imports) (Amendment) (No. 2) Order 2018 - Customs Act 1967 P.U. (B) 513/2018 - Notification of Values of Crude Petroleum Oil Under Section 12 - Customs Act 1967 30-08-18 P.U. (A) 224/2018 - Customs Duties (Goods of ASEAN Countries Origin) (ASEAN

International Trade Compliance Update | September 2018 57

Baker McKenzie

Date Matter Harmonised Tariff Nomenclature and ASEAN Trade In Goods Agreement) (Amendment) Order 2018 - Customs Act 1967 P.U. (A) 226/2018 - Customs Duties (Amendment) Order 2018 - Customs Act 1967

NEW ZEALAND

Customs and Excise Act 2018 commencement dates gazetted On 23 August 2018, it was gazetted that the Customs and Excise Act 2018 (the Act) and the Customs and Excise Amendment Regulations 2018 to support the Act, will come into force on 1 October 2018.

On 21 August 2018, Notice of the Making of Rules Under Section 421(1) of the Customs and Excise Act 2018 was gazetted. These rules include:

• Customs (Advance Notice of Arrival) Rules 2018 (CR 2018/ANA) • Customs (Amendment of Provisional Value) Rules 2018 (CR 2018/PVL1) • Customs (Applications for Administrative Reviews) Rules 2018 (CR 2018/ARV1) • Customs (Applications for CASE Licences) Rules 2018 (CR 2018/CSE1) • Customs (Applications for Customs-controlled area Licences) Rules 2018 (CR 2018/CCA1) • Customs (Applications for Secure Export Schemes and Scheme Amendments) Rules 2018 (CR 2018/SES1) • Customs (Applications for Valuation Rulings) Rules 2018 (CR 2018/VRL1) • Customs (Nil Returns) Rules 2018 (CR 2018/NIL1) • Customs (Import Entry) Amendment Rules 2018 (CR 2018/IMP1) • Customs (Excisable Goods Entry) Amendment Rules 2018 (CR 2018/EXC1)

In addition, New Zealand Customs Service has published a Transitional and Sav- ings Provisions Guide – Customs and Excise Act 2018.

Importer may register for provisional values As a result of the Customs and Excise Act 2018, which comes into effect on 1 October, certain importers can start using provisional values on import entries from 1 October if they have registered with Customs. In some cases, they will need to be approved first.

It takes 30 working days to process applications, so forms with all required documentation need to be lodged no later than 20 August 2018.

NZ Customs Service has produced an Importers Guide that explains the eligibility criteria and the registration process. The guide and registration forms are on NZ Customs website.

The Act education website has additional information about provisional values.

New rates for motor spirits An increase of 3.5 cents per litre of motor spirit in the excise and excise- equivalent duty rates on motor spirits will take place on 30 September 2018.

International Trade Compliance Update | September 2018 58

Baker McKenzie

The new rates are those set out in the Excise and Excise-equivalent Duties Table (Motor Spirits) Amendment Order 2018.

Motor spirit products removed from a licensed manufacturing area or imported after midnight on 29 September 2018 will be subject to the new rates.

Government seeking submissions on Trade for All policy On 6 August 2018, the Government announced the launch of its Trade for All agenda and invited New Zealanders to have their say on what matters to them on trade policy and in trade agreements. The Prime Minister Rt Hon Jacinda Ar- dern and Minister for Trade and Export Growth Hon David Parker have launched the Trade for All consultations. The consultation seeks answers to:

How do we support sustainable economic development that takes into account the impact on the environment we work and live in? How can trade policy be more inclusive and support New Zealanders in all regions of New Zealand to succeed on the global stage, including women, Māori and people in small and medium-sized enterprises? These are the questions you can ask yourself when giving your feedback.

The announcement notes that the Government already has a broad agenda of trade deals in the pipeline.

The CPTPP is set to come into effect around the end of the year, and talks are in train with the EU, the Pacific Alliance, and in the Regional Comprehensive Economic Part- nership. Upgrades to existing trade deals are underway with China and Singapore and preliminary steps towards trade talks with the UK have been taken, pending Brexit. The Bill to bring into effect Pacer Plus – a trade deal with our Pacific neigh- bours – is before the House. We have also made progress on bilateral issues with the US. President Trump last week signed into law the KIWI Act, giving businesses easier visa access to the US. Trade and Investment Framework Agreement talks, which went into abeyance when the US was part of TPP, have been resumed with the US.

Public meetings will be held throughout the country from 20 August to 28 Sep- tember. Interested parties can find the details or register to attend here.

New Zealander’s views and the recommendations of the Trade for All Advisory Board will help inform the development of a Trade for All policy by mid-2019. Make a submission at haveyoursay.mfat.govt.nz or get in touch with trade- [email protected].

New Zealand Gazette The following international trade related documents were published in the New Zealand Gazette (dd-mm-yy):

Date Matter Tariff Concession (Advertisement) Notice No. 2018/35 07-08-18 Tariff Concession Approvals, Withdrawals and Declines Notice (No. 35) 2018 10-08-18 Tariff Concession Approvals, Withdrawals and Declines Notice (No. 36) 2018 13-08-18 Tariff Concession (Advertisement) Notice No. 2018/36 Notice Under the Legislation Act 2012 16-08-18 • Excise and Excise-equivalent Duties Table (Motor Spirits) Amendment Order 2018 20-08-18 Tariff Concession Approvals, Withdrawals and Declines Notice (No.37) 2018

International Trade Compliance Update | September 2018 59

Baker McKenzie

Date Matter Notice of the Making of Rules Under Section 421(1) of the Customs and Excise 21-08-18 Act 2018 The International Trade Compliance Notice Under the Legislation Act 2012 Update is a publication of the Glob- 23-08-18 • Customs and Excise Act 2018 Commencement Order 2018 al International Commercial and • Customs and Excise Amendment Regulations 2018 Trade Practice Group of Baker Notice of the Making of Rules Under Section 421(1) of the Customs and Excise McKenzie. Articles and comments Act 2018 are intended to provide our readers • Customs (Applications for Registered User System Registration) Rules 29-08-18 with information on recent legal 2018 (CR 2018/RUS1) developments and issues of signifi- • Customs (Arriving Passenger and Crew Declarations) Rules 2018 (CR cance or interest. They should not 2018/ARR1) be regarded or relied upon as legal advice or opinion. Baker McKenzie PHILIPPINES advises on all aspects of Interna- tional Trade law. Tariff Commission matters The following Tariff Commission publications or Executive Orders were posted to Comments on this Update may be the Tariff Commission website [Date is mm/dd/yy]: sent to the Editor: Stuart P. Seidel Date Reference Matter Washington, D.C. Reducing the rates of duty on capital equipment, spare parts and +1 202 452 7088 07-07-18 EO 57 accessories imported by Board of Investments - Registered new [email protected] and expanding enterprises Modifying the Rates of Import Duty on Certain Imported Articles in Order to Implement the Philippine Tariff Commitments Pursu- 08-10-18 EO 61 A note on spelling, grammar ant to the Free Trade Agreement Between the European Free and dates-- Trade Association States and the Philippines In keeping with the global nature of Baker McKenzie, the original SINGAPORE spelling, grammar and date format- ting of non-USA English language Notices, circulars, etc. material has been preserved from the original source whether or not Date Reference Matter the material appears in quotes. Customs Permit required for Removal of Goods from Licensed 08-08-18 Circular 07/2018 and Zero-GST Warehouses Translations of most non-English Permit Requirements for the Import, Export, Transhipment and language documents are unofficial 10-08-18 Notice 14/2018 Bringing-In-Transit of Goods Originating from or Destined for and are performed via an automat- The Democratic People’s Republic of Korea Corppass will be the only Mode of Login for Companies to ed program and are for information 24-08-18 Notice 15/2018 purposes only. Transact with Singapore Customs from 1 Sep 2018 27-08-18 Notice 16/2018 Decommissioning of TradeXchange Credits: VIETNAM Unless otherwise indicated, all in- Draft of amended law on tax administration formation is taken from official international organization or govern- The Ministry of Finance released the draft of the Amended Law on Tax Admin- ment websites, or their newsletters istration for public comments on 30 July 2018 (the “Draft Law”). Below are some or press releases. highlighted issues from the Draft Law: Source documents may be accessed by clicking on the blue Tax on E-Commerce hypertext links. The Draft law introduces a taxation principle which mainly targets E-Commerce This Update contains public sector infor- businesses, supplied by offshore entities and individuals who derive income from mation licensed under the Open Gov- ernment Licence v3.0 of the United King- Vietnam. dom. In addition, the Update uses material pursuant to European Commission Particularly, E-commerce businesses supplied by offshore entities and individu- policy as implemented by Commission Decision of 12 December 2011. als will be subject to a tax withholding regime. Commercial banks conducting the

International Trade Compliance Update | September 2018 60

Baker McKenzie

remittance are obliged to conduct the tax withholding and pay the tax amount on behalf of the offshore entities and individuals in compliance with the guidelines of the Ministry of Finance (MOF) and State Bank of Vietnam (SBV) (Article 27.3).

The Draft Law also sets forth responsibilities for governmental agencies to collaborate with the taxation of E-Commerce businesses (Article 19), such as:

• The Ministry of Industry and Trade (MOIT) is in charge of collaborating with the MOF in administering tax issues of E-Commerce businesses; liaising and providing information of entities/individuals operating E-Commerce businesses for tax administration purposes. • The SBV is in charge of developing a national E-Commerce payment system, and other applications embedded with e-payments to support E-Commerce businesses; establishing a surveillance mechanism of cross-border E-Commerce service supplies.

Reinstate E-tax payment and assign Taxation Role to Commercial Banks

The Draft Law maintains the current requirement that taxpayers conduct e-tax payments if the infrastructure is allowed. Also, the Draft Law sets forth an exclu- sive article regulating the rights and obligations of commercial banks in collabora- tion with tax authorities in taxation. Particularly, commercial banks are obliged to collaborate with tax authorities in e-tax payment and refund mechanisms; period- ically provide taxpayer's bank account information to tax authorities; conduct withholding tax; and collaborate in freezing bank accounts for tax enforcement.

Adopt BEPS Action Plans

As Vietnam is a member of the Inclusive Framework on Base Erosion and Profit Shifting (BEPS), the Draft Law has incorporated the BEPS standards for tax administration. Particularly, the Draft Law has incorporated the following provisions:

• The “substance over form” principle is applied in determining taxpayers' obligations (Article 5.4). Where applicable, Country by Country Report is part of the tax declaration dossier (Article 43.7). The Draft Law also grants tax authorities the right to impose “deemed” tax amounts when taxpayers conduct inappropriate transactions with economic substance or fail to declare related party transactions and required information (Arti- cle 50.1.g).

Enforcement of E-invoice

The Draft Law aims to legislate e-invoice regulations into a law document and escalates the application of e-invoices in all transactions regardless of types of sellers and transaction values.

Accordingly, taxpayers must use e-invoices for their transactions regardless of transaction values (Article 90.1, Article 91.1). E-invoices include e-invoices with reference codes issued by tax authorities and e-invoices without reference codes issued by tax authorities.

E-invoices used in most of transactions are those with reference codes issued by tax authorities. Only enterprises operating in certain business lines (namely power, gasoline, telecommunication, transportation, water supply, finance, banking, insurance, e-commerce, etc.) with proper IT infrastructure are allowed to use e-

International Trade Compliance Update | September 2018 61

Baker McKenzie

invoices without reference codes issued by tax authorities. Households and individual businesses are also subject to e-invoices.

For additional information, please contact the author, Thanh Vinh Nguyen. Europe, Middle East and North Africa European Union and EFTA EU Blocking Regulation in support of Iran nuclear deal enters into force Further to our previous blog posts of 18 May 2018 and 7 June 2018, the updated Blocking Regulation (Regulation 2271/96) entered into force on 7 August 2018. The effect is to block the application in the EU of extraterritorial U.S. sanctions targeting Iran.

The update was triggered by the U.S.’ unilateral decision on 8 May 2018 to withdraw from the Joint Comprehensive Plan of Action, and the subsequent reimposi- tion of extraterritorial sanctions. The full list of extraterritorial measures blocked by the EU can be found here.

What does the Blocking Regulation do?

In short, the Blocking Regulation:

• prohibits EU persons from complying with the blocked U.S. measures; • requires EU persons to notify the European Commission of any effects on their economic or financial interests caused by a blocked measure; • prevents the enforcement and/or recognition of any judgment or decision of a non-EU authority that gives effect to a blocked measure; and • allows EU persons to recover damages arising from the application of the blocked measures. The Blocking Regulation applies to EU entities, EU residents, EU nationals based outside the EU, and other persons located within the EU and acting in a professional capacity. Non-EU subsidiaries of EU entities are not required to comply; however, EU subsidiaries of non-EU companies (including U.S. parent companies) are required to comply with all provisions of the Blocking Regulation.

Enforcement of the Blocking Regulation falls within the remit of Member States. Some Member States (including the UK, Sweden and the Netherlands) impose criminal penalties for violations; some other Member States impose civil/administrative penalties (including Germany, Austria, Spain and Italy). Some Member States (such as France) have yet to introduce penalties for violations. To-date, enforcement of the Blocking Regulation has not been a priority for the EU Member States.

Nonetheless, companies with an EU nexus will need to consider carefully any decision to withdraw from business involving Iran in order to balance their obligations under the Blocking Regulation with potential risks under U.S. sanctions.

The EU has also issued a guidance note on the application of the Blocking Regu- lation, available here.

International Trade Compliance Update | September 2018 62

Baker McKenzie

Is there scope for a waiver from the requirements of the Blocking Regula- tion?

Yes, the European Commission can authorise EU persons to comply with the U.S. measures in full or in part, where “non-compliance would seriously damage their interests or those of the Community”.

The 14 criteria for authorisation are set out in Regulation 2018/1101 (available here). These include the following criteria of particular interest:

• the existence of an ongoing administrative or judicial investigation against the applicant from, or a prior settlement agreement with, the third country which is at the origin of the listed extra-territorial legislation (in this context, the U.S.); and • the existence of a substantial connecting link with the third country (again, the U.S. in this context) which is at the origin of the listed extraterritorial legislation or the subsequent actions; for example the applicant has parent companies or subsidiaries, or participation of natural or legal persons subject to the primary jurisdiction of the third country which is at the origin of the listed extra-territorial legislation or the subsequent actions.

In other words, it may be possible to obtain an authorisation where (for example) a U.S. authority such as OFAC has reached a settlement with an EU entity in relation to violations of U.S. sanctions, and that settlement requires the EU entity to comply with the blocked measures.

The Commission will consider applications on a case-by case basis, and there is no guarantee that it will grant any authorisation.

For additional information, please contact the authors, Ross Denton and Sunny Mann.

EU publishes Guidance Note on update to Blocking Statute On 7 August the Commission Delegated Regulation (EU) 2018/1100 entered into force. This Delegated Regulation amended the Annex to Council Regulation (EC) No 2271/96 of 22 November 1996 protecting against the effects of extra-territorial application of legislation adopted by a third country, and actions based thereon or resulting therefrom (‘Blocking Statute’).

The Regulation as amended, applies immediately to economic operators and shall be implemented and applied by national authorities and courts.

The Blocking Statute aims to protect the established legal order, the interests of the Union and the interests of natural and legal persons exercising rights under the Treaty on the Functioning of the European Union against the unlawful effects of extra-territorial application of such legislation.

The aim of this document is to provide guidance on the application of certain provisions of the Blocking Statute. It does not cover all provisions of that legal act in an exhaustive manner, nor does it create any new rules. Only the legal text of the Blocking Statute as published in the Official Journal is binding.

The Commission oversees the application of Union law under the control of the Court of Justice of the European Union. Pursuant to the Treaties, only the Court

International Trade Compliance Update | September 2018 63

Baker McKenzie

of Justice of the European Union can provide legally binding interpretations of acts of the institutions of the Union.

The update was triggered by the United States' unilateral decision on 8 May 2018 to re-impose extra-territorial sanctions against Iran simultaneously with its withdrawal from the Joint Comprehensive Plan of Action (JCPOA), signed in 2015 between Iran, on the one hand, and China, France, Russia, the United Kingdom, Germany, the US and the European Union, on the other. The lifting of certain Iran-related sanctions is an essential component of the agreement. The re- imposition by the US of extra-territorial sanctions could potentially affect EU operators doing legitimate business with Iran. Such legislation will be re-imposed as of 7 August 2018 and 5 November 2018. Since 1996, the Blocking Statute has mainly applied to extra-territorial sanctions of the U.S. related to Cuba. In 1998, the Union and the U.S. signed a Memorandum of Understanding by which the U.S. administration suspended the application of certain provisions of the Cuba extra-territorial sanctions ‘as long as the EU and other allies continue their stepped up efforts to promote democracy in Cuba’.

Commission issues tariff classification regulations See separate section below for tariff classification regulations issued by the Eu- ropean Commission during the period covered by this Update.

Amendments to the CN Explanatory Notes See separate section below for amendments to the Explanatory Notes to the Combined Nomenclature of the European Union that were published in the Offi- cial Journal during the period covered by this Update.

Binding Tariff Information The European Community has created the Binding Tariff Information (BTI) system as a tool to assist economic operators to obtain the correct tariff classification for goods they intend to import or export.

Binding Tariff Information is issued on request to economic operators by the customs authorities of the Member States. It is valid throughout the Community, regardless of the Member State which issued it. For information about an existing BTI, you may want to contact the customs administration of the Member State which issued it. However, remember that, according to the provisions for data protection, there are limitations as to the information an administration can provide. You can search and consult existing BTIs on the EBTI-database.

Official Journal documents The following documents of interest to international traders (excluding documents relating to day-to-day management of agricultural matters, individual protected designations of origin registrations, approvals or restrictions on specific substances and fishing rights) were published in the Official Journal of the European Union:

OJ Date Subject Council Decision (EU) 2018/1089 of 22 June 2018 on the conclusion, on behalf of the Union, of the Agreement between the European Union and the Kingdom 01-08-18 of Norway on administrative cooperation, combating fraud and recovery of claims in the field of value added tax • Agreement between the European Union and the Kingdom of Norway

International Trade Compliance Update | September 2018 64

Baker McKenzie

OJ Date Subject on administrative cooperation, combating fraud and recovery of claims in the field of value added tax Commission Implementing Regulation (EU) 2018/1090 of 31 July 2018 concerning the authorisation of a preparation of endo-1,4-beta-xylanase and endo- 1,3(4)-beta-glucanase produced by Komagataella pastoris(CBS 25376) and Komagataella pastoris (CBS 26469) as a feed additive for chickens for fattening, chickens reared for laying, turkeys for fattening, all avian species reared for laying or for breeding purposes, weaned piglets and minor porcine species (weaned) (holder of the authorisation Kaesler Nutrition GmbH) Commission Delegated Regulation (EU) 2018/1096 of 22 May 2018 amending Implementing Regulation (EU) No 29/2012 as regards the requirements for certain indications on the labelling of olive oil 03-08-18 Commission Regulation (EU) 2018/1098 of 2 August 2018 amending and cor- recting Annex III to Regulation (EC) No 110/2008 of the European Parliament and of the Council on the definition, description, presentation, labelling and the protection of geographical indications of spirit drinks Notice concerning the entry into force of a Protocol between the European Community and its Member States and the Republic of Lebanon establishing a dispute settlement mechanism applicable to disputes under the trade provisions of the Euro-Mediterranean Agreement establishing an association between the European Community and its Member States, of the one part, and the Republic of Lebanon, of the other part Agreement between the European Community and the Swiss Confederation on 06-08-18 mutual recognition in relation to conformity assessment, Annex 1, Chapter 5, Section 5, Point 9 ‘Information exchange’ — Information from Switzerland on the basis of Article 12 of the Agreement on the types of gas and the corresponding supply pressures of gaseous fuels on the Swiss territory referred to in Annex II of Regulation (EU) 2016/426 of the European Parliament and of the Council of 9 March 2016 on appliances burning gaseous fuels and repealing Directive 2009/142/EC (This publication is based on information received by the Commis- sion from the Swiss Confederation) [2018/C 275/01] Commission Delegated Regulation (EU) 2018/1100 of 6 June 2018 amending the Annex to Council Regulation (EC) No 2271/96 protecting against the effects of extra-territorial application of legislation adopted by a third country, and actions based thereon or resulting therefrom Commission Implementing Regulation (EU) 2018/1101 of 3 August 2018 laying down the criteria for the application of the second paragraph of Article 5 of Council Regulation (EC) No 2271/96 protecting against the effects of the extra- territorial application of legislation adopted by a third country, and actions based 07-08-18 thereon or resulting therefrom Commission Delegated Decision (EU) 2018/1102 of 6 June 2018 amending Annex III to Decision No 466/2014/EU of the European Parliament and of the Council granting an EU guarantee to the European Investment Bank against losses under financing operations supporting investment projects outside the Union, as regards Iran Guidance Note — Questions and Answers: adoption of update of the Blocking Statute [2018/c 277 I/03] Decision No 2/JP/2018 of 17 July 2018 of the Joint Committee established un- 08-08-18 der the Agreement on Mutual Recognition between the European Community and Japan [2018/1104] Council Decision (EU) 2018/1107 of 20 July 2018 on the conclusion of a Part- nership and Cooperation Agreement between the European Union and its Member States, of the one part, and the Republic of Iraq, of the other part Commission Implementing Decision (EU) 2018/1114 of 9 August 2018 amending the Annex to Implementing Decision 2014/709/EU concerning animal health 08-10-18 control measures relating to African swine fever in certain Member States (notified under document C(2018) 5510) Commission communication in the framework of the implementation of Regula- tion (EU) No 305/2011 of the European Parliament and of the Council laying down harmonised conditions for the marketing of construction products and repealing Council Directive 89/106/EEC (Publication of references of European

International Trade Compliance Update | September 2018 65

Baker McKenzie

OJ Date Subject Assessment Documents in accordance with Article 22 of Regulation (EU) No 305/2011) [2018/C 281/04] Commission communication in the framework of the implementation of the Council Directive 89/686/EEC on the approximation of the laws of the Member States relating to personal protective equipment (Publication of titles and references of harmonised standards under Union harmonisation legislation) [2018/C 282/01] Commission communication in the framework of the implementation of Directive 2009/48/EC of the European Parliament and of the Council on the safety of toys (Publication of titles and references of harmonised standards under Union harmonisation legislation) [2018/C 282/02] Commission Delegated Regulation (EU) 2018/1118 of 7 June 2018 amending Delegated Regulation (EU) 2015/2446 as regards the conditions for a reduction of the level of the comprehensive guarantee and the guarantee waiver [Union Customs Code] Commission Implementing Regulation (EU) 2018/1120 of 10 August 2018 amending Annex I to Regulation (EU) No 605/2010 as regards the list of third countries or parts thereof from which the introduction into the European Union of consignments of raw milk, dairy products, colostrum and colostrum-based products is authorised 13-08-18 Commission Implementing Regulation (EU) 2018/1122 of 10 August 2018 au- thorising the placing on the market of pyrroloquinoline quinone disodium salt as a novel food under Regulation (EU) 2015/2283 of the European Parliament and of the Council and amending Commission Implementing Regulation (EU) 2017/2470 Commission Implementing Regulation (EU) 2018/1123 of 10 August 2018 au- thorising the placing on the market of 1-methylnicotinamide chloride as a novel food under Regulation (EU) 2015/2283 of the European Parliament and of the Council and amending Commission Implementing Regulation (EU) 2017/2470 Commission Implementing Regulation (EU) 2018/1128 of 9 August 2018 amending Implementing Regulation (EU) No 1354/2011 opening annual Union tariff quotas for sheep, goats, sheepmeat and goatmeat Commission Implementing Regulation (EU) 2018/1129 of 13 August 2018 approving acetamiprid as an existing active substance for use in biocidal products of product-type 18 Commission Implementing Regulation (EU) 2018/1130 of 13 August 2018 approving cypermethrin as an existing active substance for use in biocidal products of product-type 18 Commission Implementing Regulation (EU) 2018/1131 of 13 August 2018 approving penflufen as an active substance for use in biocidal products of product- type 8 Commission Implementing Regulation (EU) 2018/1132 of 13 August 2018 au- thorising the change of the designation and specific labelling requirement of the novel food synthetic zeaxanthin under Regulation (EU) 2015/2283 of the Euro- 14-08-18 pean Parliament and of the Council and amending Commission Implementing Regulation (EU) 2017/2470 Commission Implementing Regulation (EU) 2018/1133 of 13 August 2018 au- thorising the placing on the market of dried aerial parts of Hoodia parviflora as a novel food under Regulation (EU) 2015/2283 of the European Parliament and of the Council and amending Commission Implementing Regulation (EU) 2017/2470 Commission Implementing Decision (EU) 2018/1136 of 10 August 2018 on risk mitigation and reinforced biosecurity measures and early detection systems in relation to the risks posed by wild birds for the transmission of highly pathogenic avian influenza viruses to poultry (notified under document C(2018) 5243) Commission Implementing Decision (EU) 2018/1137 of 10 August 2018 on the supervision, plant health checks and measures to be taken on wood packaging material for the transport of commodities originating in certain third countries (notified under document C(2018) 5245) Notice concerning the entry into force of the Partnership and Cooperation 16-08-18 Agreement between the European Union and its Member States, of the one

International Trade Compliance Update | September 2018 66

Baker McKenzie

OJ Date Subject part, and the Republic of Iraq, of the other part Decision No 1/2017 of the EPA Committee established by the Interim Agree- ment establishing a framework for an Economic Partnership Agreement between the Eastern and Southern Africa States, on the one part, and the Europe- an Community and its Member States, on the other part, of 3 October 2017 regarding the accession of the Republic of Croatia to the European Union and changes in the list of countries and territories associated with the European Un- ion [2018/1144] Summary of European Commission Decisions on authorisations for the placing on the market for the use and/or for use of substances listed in Annex XIV to Regulation (EC) No 1907/2006 of the European Parliament and of the Council 17-08-18 concerning the Registration, Evaluation, Authorisation and Restriction of Chemi- cals (REACH) (Published pursuant to Article 64(9) of Regulation (EC) No 1907/2006) [2018/C 290/06] Council Decision (EU) 2018/1194 of 21 June 2018 on the conclusion, on behalf of the Union and of the Member States, of the Protocol to the Partnership and Cooperation Agreement establishing a partnership between the European Communities and their Member States, of the one part, and the Republic of Uz- bekistan, of the other part, to take account of the accession of the Republic of Croatia to the European Union 23-08-18 Council Decision (EU) 2018/1195 of 16 July 2018 on the signing, on behalf of the European Union, of a Protocol to the Agreement on the international occa- sional carriage of passengers by coach and bus (Interbus Agreement) regarding the international regular and special regular carriage of passengers by coach and bus Various decisions of the EEA Joint Committee from Decision of the EEA Joint Committee No 216/2016 through No. 255/2016 [except 243/2016, 244/2016] Council Decision (EU) 2018/1197 of 26 June 2018 on the signing, on behalf of the European Union, and provisional application of the Strategic Partnership Agreement between the European Union and its Member States, of the one 24-08-18 part, and Japan, of the other part • Strategic Partnership Agreement between the European Union and its Member States, of the one part, and Japan, of the other part Commission Implementing Decision (EU) 2018/1203 of 21 August 2018 author- ising Member States to provide for a temporary derogation from certain provi- 27-08-18 sions of Council Directive 2000/29/EC in respect of ash wood originating or processed in the United States of America and repealing Commission Implement- ing Decision (EU) 2017/204 (notified under document C(2018) 5848) Commission Implementing Decision (EU) 2018/1205 of 27 August 2018 amending the Annex to Implementing Decision 2014/709/EU concerning animal health 28-08-18 control measures relating to African swine fever in certain Member States (notified under document C(2018) 5723) Commission Implementing Regulation (EU) 2018/1206 of 28 August 2018 open- 29-08-18 ing and providing for the management of Union tariff quotas for sheep meat and goat meat and processed sheep meat originating in Iceland Dangerous substances — List of authorisation decisions taken by the EEA EF- TA States in accordance with Article 64(8) of Regulation (EC) No 1907/2006 30-08-18 (REACH) in the second half of 2017 [2018/C 305/11] Medicinal products — List of marketing authorisations granted by the EEA EFTA States for the second half of 2017 [2018/C 305/12] Information concerning the date of entry into force of the Protocol to the Euro- Mediterranean Agreement establishing an Association between the European Community and its Member States, of the one part, and the Republic of Leba- non, of the other part, to take account of the accession of the Republic of Bul- garia and of Romania to the European Union 31-08-18 Information concerning the date of entry into force of the Protocol to the Euro- Mediterranean Agreement establishing an Association between the European Community and its Member States, of the one part, and the Republic of Leba- non, of the other part, to take account of the accession of the Republic of Croa- tia to the European Union Corrigendum to Passenger Name Records (PNR) — List of Member States who

International Trade Compliance Update | September 2018 67

Baker McKenzie

OJ Date Subject have decided the application of the PNR Directive to intra-EU flights — As referred to in Article 2 of Directive (EU) 2016/681 of the European Parliament and of the Council on the use of passenger name record (PNR) data for the prevention, detection, investigation and prosecution of terrorist offences and serious crime (If a Member State decides to apply this Directive to intra-EU flights, it shall notify the Commission in writing. A Member State may give or revoke such a notification at any time. The Commission shall publish that notification and any revocation of it in the Official Journal of the European Union) ( OJ C 196, 8.6.2018 ) [2018/C 308/07] Summary of European Union decisions on marketing authorisations in respect of medicinal products from 1 July 2018 to 31 July 2018(Published pursuant to Article 13 or Article 38 of Regulation (EC) No 726/2004 of the European Parlia- ment and of the Council) [2018/C 309/01]

OJ Date Restrictive Measure Council Decision (CFSP) 2018/1125 of 10 August 2018 amending Decision (CFSP) 2015/740 concerning restrictive measures in view of the situation in South Sudan Council Implementing Regulation (EU) 2018/1115 of 10 August 2018 implementing Article 20(1) of Regulation (EU) 2015/735 concerning restrictive measures in respect of the situation in South Sudan Council Regulation (EU) 2018/1116 of 10 August 2018 amending Regulation (EU) 2015/735 concerning restrictive measures in respect of the situation in 13-08-18 South Sudan Council Decision (CFSP) 2018/1126 of 10 August 2018 amending Decision 2013/184/CFSP concerning restrictive measures against Myanmar/Burma Council Implementing Regulation (EU) 2018/1117 of 10 August 2018 implementing Regulation (EU) No 401/2013 concerning restrictive measures in respect of Myanmar/Burma Commission Implementing Regulation (EU) 2018/1124 of 10 August 2018 amending Council Regulation (EC) No 1210/2003 concerning certain specific restrictions on economic and financial relations with Iraq Commission Implementing Regulation (EU) 2018/1138 of 13 August 2018 amending for the 289th time Council Regulation (EC) No 881/2002 imposing 14-08-18 certain specific restrictive measures directed against certain persons and entities associated with the ISIL (Da'esh) and Al-Qaida organisations Commission Implementing Regulation (EU) 2018/1204 of 27 August 2018 amending for the 290th time Council Regulation (EC) No 881/2002 imposing 27-08-18 certain specific restrictive measures directed against certain persons and entities associated with the ISIL (Da'esh) and Al-Qaida organisations

Antidumping and countervailing duty cases See separate Antidumping Countervailing Duty and Safeguards Investiga- tions, Orders & Reviews section below.

INDIVIDUAL EU-EFTA COUNTRIES CZECH REPUBLIC Exemption of supply of services relating to the importation and exportation of goods in the Czech Republic Recently, it can be noticed that the Czech tax authorities have started focusing on the application of the updated rules concerning the VAT exemption for services relating to the export/import of goods that are applicable from 1 March 2018 onwards and are summarized in an Information issued by the Czech tax authorities.

International Trade Compliance Update | September 2018 68

Baker McKenzie

The mentioned Information was issued by the Czech General Financial Direc- torate at the beginning of 2018 in the wake of the CJEU's judgment in L. Č. IK v Valsts ienemumu dienests (C-288/16) and outlines the view of the Czech tax authorities on the exemption of services relating to importation and exportation of goods within the meaning of Article 144 and Article 146 (1)(e) of the VAT Di- rective.

In the L. Č. case, a company, Atek, concluded a contract with a consignor for the transport of goods from the port of Riga (Latvia) to Belarus. However, the actual transport of the goods was assigned by Atek to L.Č. under a second contract. In particular, L. Č. was responsible for driving the vehicles (which were owned by Atek), loading, unloading, customs declarations, car repairs and refuelling, surveillance of the goods, and transfer of goods to the consignee.

L.Č. regarded the supplied services as services connected with export of goods and thus applied a 0% VAT rate to those services. This position was challenged by the Latvian tax authorities and the case came before the CJEU. After considering the facts, the CJEU decided that "Article 146(1)(e) of Council Directive 2006/112/EC of 28 November 2006 on the common system of value added tax must be interpreted as meaning that the exemption laid down in that provision does not apply to a supply of services, such as that at issue in the main proceedings, relating to a transaction consisting in the transport of goods to a third country, where those services are not provided directly to the consignor or the consignee of those goods."

After consideration of the wording of the VAT Directive, the Czech VAT Act and the decision of the CJEU in the L.Č. case, the Czech tax authorities concluded, or more precisely repeated, that in order to apply the VAT exemption for services relating to export or import of goods, there must be a direct link between the service and the import or export of goods.

It follows from the Official Information of the Czech tax authorities that it is possible to exempt only those services that are objectively invoked by the import/export of goods and that contribute to the realization of the import/export of goods. In addition, the tax authorities require at the same time that the services are provided directly – meaning that there must be a direct relationship between the services provider and the importer/exporter, the recipient, or the consignor.

In other words, it is insufficient for the application of the VAT exemption that the service is merely connected to the import/export of goods - there should also be a contractual relationship between the services provider and the importer/exporter, the recipient, or the consignor.

Please be aware that in the event of an incorrect application of the VAT exemption relating to services connected with export, the Czech tax authorities might assess the VAT together with the penalty of 20% of the unpaid VAT and the late payment interest (currently 14.75% p.a.).

For additional information, please contact the author, Eliska Kominkova. FRANCE Official Gazette (Journal officiel)

Date Measure

International Trade Compliance Update | September 2018 69

Baker McKenzie

Date Measure

41. Order of 16 July 2018 establishing the central administration of the Direc- 01-08-18 torate General of Customs and Excise

Notices to importers The following notices were posted by Directorate General of Customs and Indi- rect Taxes (For laws and regulations, decrees, etc. please see listings under Other EU-EFTA Notices - Import-export related measures, below) :

Release Ref. No. and Subject Date 2018/49 - Notice to Importers of Urea and Ammonium Nitrate Mixtures Originating 13-08-18 in Russia, Trinidad and Tobago, United States 28-08-18 18-042 - Duties and taxes applicable to energy products as of September 1, 2018 2018/50-Notice to importers of processed sheepmeat and goatmeat and sheep- 29-08-18 meat originating in Iceland

IRELAND Irish bill prohibiting the import and trade in settlement goods passes Upper House of Irish parliament In July 2018, the Control of Economic Activity (Occupied Territories) Bill 2018 (An Bille um Ghníomhaíocht Eacnamaíoch a Rialú (Críocha faoi Fhorghabháil), 2018) (the “Bill”), a Private Member’s Bill proposed by the Irish independent senator Frances Black, was passed in the Seanad (the Upper House of the Irish Parlia- ment). The Bill makes it an offence for a person to import or sell goods or services originating in an occupied territory or to extract resources from an occupied territory in certain circumstances.

Although the Bill does not expressly refer to Israel or Palestine, it has been wide- ly interpreted as being directed at restricting trade with Israeli settlements. The Bill would apply to:

• a person who is an Irish citizen or ordinarily resident in the State, • a company incorporated under the Companies Act 2014, and • an unincorporated body whose centre of control is exercised in Ireland.

The vote was passed by 25 votes to 20 in the Seanad, despite opposition from the Irish Government. The Bill will next pass through the Dáil (the Lower House of the Irish Parliament) to be debated and voted on. If passed in the Dáil, the Bill will become law, subject to being approved and signed by the President of Ire- land.

For additional information, please contact the authors, Ross Denton and Sunny Mann.

International Trade Compliance Update | September 2018 70

Baker McKenzie Acts of the Oireachtas and Statutory Instruments

Date Measure S.I. No. 264 European Communities (Road Vehicles: Entry into Service) 24-07-18 (Amendment) Regulations 2018 27-07-18 S.I. No. 295 European Union (Safety of Toys) (Amendment) Regulations, 2018 S.I. No. 299 Protection of Cultural Property in the Event of Armed Conflict (Hague Convention) Act 2017 (Commencement) Order 2018 S.I. No. 300 Criminal Justice (Mutual Assis16-08-18tance) Act 2008 (Designa- tion of States in Accordance with the Protocol of Convention for the Protection of Cultural Property in the Event of Armed Conflict) Order 2018 03-08-18 S.I. No. 301 Extradition (Protocol to The Hague Convention for the Protection of Cultural Property in the Event of Armed Conflict) Order 2018 S.I. No. 303 European Communities (Minimum Conditions for Examining Agri- culture Plant Species) (Amendment) Regulations 2018 S.I. No. 304 European Communities (Minimum Conditions for Examining of Vegetable Species) (Amendment) Regulations 2018 S.I. No. 312 European Union (Marine Equipment) (Amendment) Regulations 07-08-18 2018 S.I. No. 319 European Communities (Extra-Territorial Application of Legislation 10-08-18 Adopted by a Third Country) (Amendment) Regulations, 2018 S.I. No. 327 European Communities (Official Controls on the Import of Food of Non-Animal Origin) (Amendment) (No. 2) Regulations 2018 S.I. No. 328 European Union (Temporary Suspension of Imports from Bangla- desh of Food stuffs Containing or Consisting of Betel Leaves) (Amendment) 17-08-18 Regulations 2018 S.I. No. 330 European Communities (Official Controls on the Import of Food of Non-Animal Origin for Pesticide Residues) (Amendment) (No. 2) Regulations 2018 Date Restrictive Measure S.I. No. 272 European Union (Restrictive Measures concerning Ukraine) (No.2) Regulations 2018 S.I. No. 273 European Union (Restrictive Measures concerning Libya) (No. 4) Regulations 2018 S.I. No. 274 European Union (Restrictive Measures concerning ISIL (Da'esh) and Al-Qaeda and natural and legal persons, entities or bodies associated with them) Regulations 2018 S.I. No. 275 European Union (Restrictive Measures concerning Yemen) Regula- 27-07-18 tions 2018 S.I. No. 276 European Union (Restrictive Measures concerning Iraq) Regula- tions (No. 2) 2018 S.I. No. 277 European Union (Restrictive Measures in respect of Myanmar/ Burma) Regulations (No. 2) 2018 S.I. No. 278 Criminal Justice (Terrorist Offences) Act 2005 (Section 42) (Restric- tive Measures concerning Certain Persons and Entities Associated with the ISIL (Da'esh) and Al-Qaida Organisations) (No. 4) Regulations 2018

UNITED KINGDOM UK Foreign Secretary calls for further EU sanctions against Russia UK Foreign Secretary, Jeremy Hunt, started his three-day visit to the US last week by calling on the EU to follow the US in imposing sanctions on Russia in response to the Salisbury nerve agent attack that happened earlier this year.

On 6 August 2018, the US State Department accused Russia of contravening international law by using the chemical nerve agent “Novichok” on foreign soil and, on 24 August 2018, gave notice that the US Government will be imposing new sanctions on Russia (under the Chemical and Biological Weapons Control

International Trade Compliance Update | September 2018 71

Baker McKenzie

and Warfare Elimination Act of 1991). These sanctions will include the termination on arms sales financing, denial of US Government credit or other financial assistance, and prohibition on certain exports including for national security- sensitive goods. We recently published a blog on these measures.

Significantly, on his first visit to Washington DC as Foreign Secretary, Mr Hunt called for the EU to stand with “one voice” and apply further pressure by imposing “comprehensive” sanctions to ensure Russia abides by international law.

The EU Viewpoint

As a unanimous decision is needed by all 28 EU countries in order to bring further sanctions into force, the UK may face challenges in persuading all fellow EU countries to follow the decision made by the US. The EU has recently struggled to speak with a unified voice on matters relating to Russia, with some governments such as Italy and Greece wanting to draw a line and not increase the pressure by using sanctions. Additionally, Austria was one of the few EU countries that refused to expel Russian diplomats after the nerve agent attack, with the Austrian Government now calling for the reduction of the sanctions against the Russian government.

Nonetheless, it will be interesting to see the next steps that the EU takes following the US State Department’s announcement of measures against Russia.

For additional information, please contact Sunny Mann or Akash Sikka.

UK agencies issue What if there’s no Brexit deal notices On 23 August 2018, several UK government departments and agencies issued notices in a series dealing with “how to prepare if the UK leaves the UK with no deal”. Below are some of the notices that were issued:

• UK government's preparations for a 'no deal' scenario (DEEU) • Trade remedies if there's no Brexit deal (DIT) • Trading with the EU if there's no Brexit deal (HMRC) • Classifying your goods in the UK Trade Tariff if there's no Brexit deal (HMT, HMRC, DIT) • Exporting controlled goods if there's no Brexit deal (ECJU, DIT) • Labelling tobacco products and e-cigarettes if there’s no Brexit deal (DHSC) • VAT for businesses if there's no Brexit deal (HMRC)

A full list of the notices in the collection is available here.

UK updates Export Control Order 2008 SI 2018/939 The Export Control (Amendment) (No. 2) Order 2018 amends the Export Control Order 2008 (SI 2008/3231) (the “2008 Order”). The 2008 Order contains export, transfer, trade and technical assistance controls on military and dual-use and certain other goods and technology. The 2008 Order also contains licensing provisions and sets out the offences and penalties for breach of the controls (except for offences relating to exportation out of the United Kingdom without a licence which are dealt with in the Customs and Excise Management Act 1979).

International Trade Compliance Update | September 2018 72

Baker McKenzie

This Order amends parts of Schedules 1, 2 and 3 to the 2008 Order to update and restructure the lists of firearms contained within those Schedules which require an export licence from the UK. The amendments are being made to implement Directive 2017/853 of 17 May 2017 of the European Parliament and of the Council (OJ L 137, 24.5.2017, p.22) (“the amending Directive”) amending Council Directive 91/477/EEC on control of the acquisition and possession of weapons (OJ L 256, 13.9.1991, p.51) (“the Directive”). The amending Directive extends the controls on firearms to include controls on devices capable of being converted to firearms and introduces a difference between the firearms controlled by the Directive and those controlled by Council Regulation (EU) No 258/2012 (OJ L 94, 30.3.2012, p.1) (“the 2012 Regulation”) which governs exports outside the European Union. Article 2(3)(a) to (c) makes amendments to control entries ML1, ML2 and ML3 of the UK Military List to ensure that non-military firearms are distinguished from firearms falling under the UK Military List. Article 2(3)(d) and (e) make changes to entries ML7 and ML10 to address typographical errors. Article 2(4) extends the controls on non-military firearms to devices capable of being converted to firearms by insertion of a new national control list PL9011 to implement the changes introduced by the amending Directive. Article 2(4) also amends PL9010 to clarify the differences between the non-military firearms controlled by the Directive and the 2012 Regulation. An Impact Assessment has not been prepared in respect of this Order as minimal or no impact on the private or voluntary sectors is foreseen. An Explanatory Memoran- dum and a transposition note are available from the Export Control Organisation, 3 Whitehall Place, London SW1A 2AW and, also, are published alongside the instru- ment on the www.legislation.gov.uk website. In addition, copies have been placed in the Libraries of both Houses of Parliament.

Parliamentary Committees publish joint report on arms export controls On 18 July 2018, a new report by Parliament’s Committees on Arms Export Con- trols (CAEC) was issued commenting on a variety of issues – including the regulation of arms-dealers; the quality of information in the public domain; concerns regarding auditing and end-user monitoring; concerns about the role of brokers / agents / advisors; concerns about enforcement and the capacity to enforce; and tackling alleged corruption in the arms trade. These issues were looked at in the context of the Committees’ review of the Government’s most recent annual reports on strategic export controls.

• Read the summary • Read the conclusions and recommendations • Read the full Report: UK arms exports during 2016

Committees on Arms Export Controls (CAEC)

CAEC consists of four House of Commons Committees meeting together to scrutinise the Government’s controls on exporting, and dealing in, both weapons and items with a potential military use. These Committees are the Defence, Foreign Affairs, Interna- tional Development and International Trade Committees. In their report, the Committees: • draw attention to the potentially significant impact of Brexit on UK arms export controls, and ask the Government to show that it is planning for the legal and other consequences of the UK ceasing to be part of EU arrangements in this area; • recommend the Government consider tightening the regulation of arms-dealers; • ask the Government to provide information about situations where licensing decisions are made by Ministers, rather than by officials;

International Trade Compliance Update | September 2018 73

Baker McKenzie

• recommend that the Government consider introducing a presumption that certain licences will be denied for exports to countries that have not signed the Arms Trade Treaty or are on the Foreign and Commonwealth Office’s list of Human Rights Priority Countries; • are critical of the Government for presenting data in formats that are very difficult to use – and say that the Government has misrepresented data in relation to prosecutions over export-control offences; • ask the Government to review the resources given to HM Revenue & Customs for the enforcement of export controls; • express dissatisfaction at the Government’s admission that it carries out no auditing of overseas operations by UK companies in connection with licences, rec- ommending that the compliance-audit regime be extended accordingly; and • recommend that the Government consider whether to start monitoring where arms exports finally end up. In addition, the Committees heard evidence linking middle-men in the arms industry to alleged corruption and diversion of arms to destinations for which they’ve not been licensed. The Committees noted they couldn’t judge the truth of these allegations, but took them very seriously, asking the Government to consider adjusting the criteria used to assess licence applications to incorporate a criterion specially relating to corruption.

Legislation (legislation.gov.uk)

Date Measure SI 2018/913 - The Materials and Articles in Contact with Food (Wales) (Amend- 01-08-18 ment) Regulations 2018 / Rheoliadau Deunyddiau ac Eitemau mewn Cysylltiad â Bwyd (Cymru) (Diwygio) 2018 22-08-18 SI 2018/939 - The Export Control (Amendment) (No. 2) Order 2018

HMRC updates The following Public Notices, Customs Information Papers (CIPs) were issued by HM Revenue & Customs:

Release Ref. No. and Subject Date

Tariff, Anti-Dumping and Other Notices Notice 60: Intrastat general guide Notice 376: Anti-dumping and countervailing duties Notice 780: Common Agricultural Policy import procedures and special directions 01-08-18 for goods Notice 800: Common Agricultural Policy export procedures Notice 812: European Union preferences - trade with Turkey Notice 826: tariff preferences - imports Notice 827: European Union preferences - export procedures UK Trade Tariff: excise duties, reliefs, drawbacks and allowances 03-08-18 Tariff Quota Notice 104 (2018): The opening of new quotas imposing provisional safeguard measures on imports of certain steel products Notice 828: tariff preferences - rules of origin for various countries 06-08-18 Notice 830: General System of Preference rules of origin Apply to access Customs Handling of Import and Export Freight (C1800) Tariff Stop Press Notice 29 (2018): amendments to CDS Volume 3 of the UK Trade Tariff 07-08-18 Tariff Stop Press Notice 30 (2018): amendments to CDS Volume 3 of the UK Trade Tariff 08-08-18 Tariff Stop Press Notice 31 (2018): amendments to CDS Volume 3 of the UK

International Trade Compliance Update | September 2018 74

Baker McKenzie

Release Ref. No. and Subject Date Trade Tariff Tariff Quota Notice 104 (2018): the opening of new quotas imposing provisional 15-08-18 safeguard measures on imports of certain steel products 20-08-18 Notice 760: Customs Freight Simplified Procedures (CFSP) Tariff Stop Press Notice 32 (2018): amendments to CDS Volume 3 of the UK Trade Tariff 22-08-18 Tariff Stop Press Notice 33 (2018): amendments to CDS Volume 3 of the UK Trade Tariff Notice 827: European Union preferences - export procedures Classifying your goods in the UK Trade Tariff if there's no Brexit deal Trading with the EU if there's no Brexit deal 23-08-18 Notice 827: European Union preferences - export procedures VAT for businesses if there's no Brexit deal 28-08-18 Money laundering supervision: civil measures Biodiesel originating in the USA (Anti-Dumping Duty 2289) Investigation of silicon, originating in Bosnia and Herzegovina and in Brazil 29-08-18 Investigation of urea ammonium nitrate solutions, originating in Russia, USA, Trinidad and Tobago (Anti-Dumping Duty 2290) Notice 199B: approved depositories under external temporary storage facility Excise Notice 197: receipt into and removal from an excise warehouse of excise goods 30-08-18 Excise Notice 196: excise goods - registration and approval of warehousekeep- ers, warehouse premises, owners of goods and registered consignors Excise Notice 203a: registered consignees

ECO Notices to Exporters and DIT documents The following Export Control Organisation (ECO) Notices to Exporters and other Department for International Trade (DIT) documents were issued:

Date Notice No. and Subct Notice to exporters 2018/20: cyber export control seminar 21 November 2018 21-08-18 London Notice to exporters 2018/21: government publishes 'no deal' technical notice on 23-08-18 export control regulation

OTHER EU-EFTA COUNTRIES Import-export related measures The following import, export or antibribery measures were published in the online editions of the official gazettes of the countries shown during the period covered by this Update. [This is a partial listing, unofficial translations.] *The date shown may be the signature date, release date or publication date, depending on local practice.

Date* Measure

ICELAND 20-08-18 № 784/2018 (17-08-18) Rules about the foreign exchange balance. № 803/2018 (31-08-18) Regulation for notifications to the Consumer Agency for 31-08-18 the marketing of certain electronics and refills for nicotine containing products LIECHTENSTEIN LGBI № 208.162 through LGBI № 2018.168 announcements of 21-08-18 of 23-08-18 Various Decisions of the EEA Joint Committee (LR № 0.110.039.44 through LR № 0.110.039.50)

International Trade Compliance Update | September 2018 75

Baker McKenzie

Date* Measure LGBI № 2018.174 Exchange of Letters between the Principality of Liechtenstein and the European Union concerning the adoption of Council Decision (EU) 27-08-18 2018/934 on the implementation of the other provisions of the Schengen acquis relating to the Schengen Information System in the Republic of Bulgaria and in Romania (further development of the Schengen acquis) (LR № 0.362.380.085) LUXEMBOURG Mem A 651: Act of 1 August 2018 transposing Council Directive (EU) 2016/2258 of 6 December 2016 amending Directive 2011/16 / EU as regards the access of tax authorities to information relating to the fight against fraud money laundering and amending 06-08-18 1. the amended Law of 29 March 2013 on administrative cooperation in the field of taxation; 2. the law of 18 December 2015 relating to the Common Reporting Standard (CRS), and 3. the law of 23 December 2016 relating to the declaration country by country Mem A 675: Law of 28 July 2018 establishing a system of control and sanctions 10-08-18 relating to foodstuffs. Mem A 683: Grand-Ducal Regulation of 18 July 2018 relating to the preparation, division, packaging or repackaging and internet sale of medicines. Mem A 689: Act of 1 August 2018 on the protection of individuals with regard to the processing of personal data in criminal matters and on national security and amending 1 ° of the amended law of 7 March 1980 on the judicial organization; 2 ° of the amended law of 29 May 1998 approving the Convention on the basis of Article K.3 of the Treaty on European Union establishing a European Police Office (Europol Convention), signed in Brussels, July 26, 1995; 3 ° of the law of 20 December 2002 approving - the Convention established on the basis of Article K.3 of the Treaty on European Union, on the use of informat- ics in the field of customs, signed in Brussels on July 26, 1995; - the Agreement on the provisional application between certain Member States of the European Union of the Convention established on the basis of Article K.3 of the Treaty on European Union, on the use of information technology in the customs area, signed in Brussels on 26 July 1995; 4 ° of the amended law of 15 June 2004 on the classification of coins and security clearances; 16-08-18 5 ° of the amended law of 16 June 2004 reorganizing the socio-educational center of the State; 6 ° of the amended law of 25 August 2006 on DNA identification procedures in criminal matters and amending the Code of Criminal Procedure; 7 ° of the law of 24 June 2008 on the control of travelers in accommodation es- tablishments; 8 ° of the amended law of 29 March 2013 on the organization of the criminal record; 9 ° of the amended law of 19 December 2014 facilitating the cross-border exchange of information concerning road safety offenses; 10 ° of the amended law of 25 July 2015 establishing the automated control and sanction system; 11 ° of the law of 5 July 2016 reorganizing the State Intelligence Service; 12 ° of the law of 23 July 2016 establishing a specific status for certain personal data processed by the State Intelligence Service; 13 ° of the law of 22 February 2018 on the exchange of personal data and police information; 14 ° of the law of 18 July 2018 on the Grand Ducal Police; and 15 ° of the law of 18 July 2018 on the General Inspectorate of Police. Mem A 695: Partnership and Cooperation Agreement between the European Union and its Member States, of the one part, and the Republic of Iraq, of the 17-08-18 other part, done at Brussels, 11 May 2012 - Entry into force and list of Related States. Mem A 702: Law of 10 August 2018 on information to be obtained and retained 21-08-18 by trustees and transposing Article 31 of Directive (EU) 2015/849 of the Europe- an Parliament and of the Council of 20 May 2015 on the prevention of the use of

International Trade Compliance Update | September 2018 76

Baker McKenzie

Date* Measure the financial system for the purpose of money laundering or terrorist financing, amending Regulation (EU) No 648/2012 of the European Parliament and of the Council and repealing Directive 2005/60 / EC of the European Parliament and of the Council and Commission Directive 2006/70 / EC Mem A 719: Grand-Ducal Regulation of 18 July 2018 amending: 1. the annex to the amended Grand-Ducal Regulation of 26 March 1974 estab- 24-08-18 lishing the list of narcotics; 2. the annex to the amended Grand-Ducal Regulation of 20 March 1974 concerning certain psychotropic substances. NORWAY FOR-2018-08-06-1221 Ministry of Agriculture and Food Regulations concerning 07-08-18 change in pesticide regulation FOR-2018-08-07-1224 Ministry of Transport and Communications Regulations 08-08-18 amending the regulation on EEA requirements for radio equipment FOR-2018-08-15-1243 Ministry of Finance Regulations concerning change in 17-08-18 regulation concerning change in regulation to the Customs and Freight Regula- tions Section 4-23-1 FOR-2018-08-20-1257 Ministry of Health and Care Regulations concerning changes to the regulation on medicinal products (pharmaceutical regulation) 23-08-18 FOR-2018-08-21-1258 Ministry of Petroleum and Energy Regulations amending the regulation on environmentally friendly design of energy-related products (ecodesign regulations) FOR-2018-08-21-1262 Ministry of Health and Care Services Regulations on the amendment to the regulation on medicinal products, the regulation on clinical trials of medicinal products for humans and regulations on the manufacture and 24-08-18 import of medicinal products FOR-2018-08-23-1264 Ministry of Agriculture and Food Regulations amending the regulation on the quota system for milk FOR-2018-08-27-1273 Ministry of Climate and Environment Regulations amending the Regulation on the Declaration and Labeling of Microbiological Products with a Useful Application That Adapts to the External Environment FOR-2018-08-27-1274 Ministry of Climate and Environmental Affairs, Ministry of 30-08-18 Labor and Social Affairs Regulations for change in biocidal regulations FOR-2018-08-27-1275 Ministry of Labor and Social Affairs, Ministry of Justice and Emergency Affairs, Ministry of Climate and Environment Regulations for change in the declaration regulation POLAND № 1466 Announcement of the Speaker of the Sejm of the Republic of Poland of 01-08-18 29 June 2018 regarding the publication of a uniform text of the act on waste electrical and electronic equipment № 1520 Regulation of the Minister of Enterprise and Technology of 13 July 2018 08-08-18 amending the regulation on requirements for toys № 1569 Regulation of the Council of Ministers of July 26, 2018 amending the 16-08-18 ordinance on the Tarnobrzeg special economic zone № 1591 Regulation of the Minister of Health of August 17, 2018 regarding the 20-08-18 list of psychotropic substances, narcotic drugs and new psychoactive substances № 1606 Regulation of the Minister of Internal Affairs and Administration of Au- 22-08-18 gust 8, 2018 amending the ordinance on conducting conformity assessment of products intended for state security purposes and the list of these products № 1611 Act of 20 July 2018 on the ratification of the Protocol of Accession to the Trade Agreement between the European Union and its Member States, of 22-08-18 the one part, and Colombia and Peru, of the other part, to take account of the accession of Ecuador, done in Brussels on November 11, 2016. № 1617 Regulation of the Minister of Enterprise and Technology of August 3, 2018 amending the ordinance on the essential requirements regarding the restriction of the use of certain hazardous substances in electrical and electronic 23-08-18 equipment № 1626 Regulation of the Minister of Health of August 16, 2018 amending the ordinance on the requirements regarding the labeling of medicinal product pack-

International Trade Compliance Update | September 2018 77

Baker McKenzie

Date* Measure aging and the content of the leaflet SWITZERLAND Ordinance of the DFI regulating the import, transit and export of animals and animal products with third countries (OITE-PT-DFI) (RS 916.443.106) 03-08-18 FSVO Order instituting measures against the spread of African swine fever through import, transit and export trade with the Member States of the European Union, Iceland and Norway (RS 916.443.107) Decision № 1/2013 of the EU-Switzerland Joint Committee amending Annexes I and II of the Agreement between the Swiss Confederation and the European 07-08-18 Community on the facilitation of controls and formalities in the transport of goods and on customs measures of security (RS 0.631.242.05) Ordinance of the FDF on goods benefiting from customs relief according to their use (Ordinance on Customs Relief, OADou) (RS 631.012) Ordinance of the FDF on the rates of contributions for the export of agricultural commodities (RS 632.111.723.1) Ordinance on the Rotterdam Convention on the Prior Informed Consent Proce- dure for Certain Chemicals in International Trade (PIC Ordinance, OPICChim) (RS 814.82) 14-08-18 Decision № 1/2018 of the Joint Veterinary Committee regarding the amendment of Appendix 6 of Annex 11 to the Agreement between the Swiss Confederation and the European Community on trade in agricultural products (RS 0.916.026.81) FSVO Order instituting measures against the spread of African swine fever through import, transit and export trade with the Member States of the European Union, Iceland and Norway (RS 916.443.107) Ordinance of the FDF on goods benefiting from customs relief according to their 21-08-18 use (Ordinance on Customs Relief, OADou) (RS 631.012) Ordinance of the DFI regulating the import, transit and export of animals and 24-08-18 animal products with third countries (OITE-PT-DFI) (RS 916.443.106) Ordinance on the Importation of Agricultural Products (Ordinance on Agricultural Imports, OIAgr) (RS 916.01) 28-08-18 Ordinance on the Importation of Agricultural Products (Ordinance on Agricultural Imports, OIAgr) (RS 916.01) FSVO Order instituting measures against the spread of African swine fever 31-08-18 through import, transit and export trade with the Member States of the European Union, Iceland and Norway (RS 916.443.107)

Restrictive measures established, amended, corrected The following restrictive measures (grouped by country) were established, amended or corrected and published in the national official journals or agency websites during the period covered by this Update. [This is a partial listing, unofficial translations.] *The date shown may be the signature date, release date or publication date, depending on local practice.

Date* Restrictive Measure

LIECHTENSTEIN LGBI № 2018.156 Ordinance of 2 August 2018 amending the regulation on 06-08-18 measures against Libya (LR № 946.221.4) LGBI № 2018.169 Order of 21 August 2018 amending the Regulation on measures against Myanmar (LR № 946.222.3) LGBI № 2018.170 Order of 21 August 2018 amending the Regulation on 23-08-18 measures to prevent the circumvention of international sanctions in relation to the situation in Ukraine (LR № 946.224.2) LGBI № 2018.171 Order of 21 August 2018 amending the Regulation on measures against the Democratic People's Republic of Korea (LR № 946.223.1) LGBI № 2018.175 Order of 28 August 2018 amending the Regulation on 30-08-18 measures against persons and entities linked to the ISIL (Da'esh) and Al-Qaida

International Trade Compliance Update | September 2018 78

Baker McKenzie

Date* Restrictive Measure groups (LR № 946.222.22) LUXEMBOURG Mem A 679 Ministerial Regulation of 13 August 2018 amending Annex IC of the Grand-Ducal Regulation of 29 October 2010 implementing the Act of 27 October 2010 on the implementation of United Nations Security Council Resolutions and 13-08-18 Acts adopted by the European Union containing prohibitions and financial restrictive measures against certain persons, entities and groups in the fight against the financing of terrorism. Mem A 720: Ministerial Regulation of 24 August 2018 amending Annex IC of the Grand-Ducal Regulation of 29 October 2010 implementing the Act of 27 October 2010 on the Implementation of United Nations Security Council Resolutions and 24-08-18 Acts adopted by the European Union containing prohibitions and financial restrictive measures against certain persons, entities and groups in the fight against the financing of terrorism. SWITZERLAND Amendment to the Ordinance on Measures against the Republic of South Sudan 02-08-18 (RS 946.231.169.9) [Entry into force: 03-08-18] Amendment to the Ordinance of 7 August 1990 instituting economic measures 08-08-18 towards the Republic of Iraq (RS 946.206) [Entry into force 07-08-18] Amendment to the Ordinance of 18 May 2016 instituting measures against the 09-08-18 Democratic People's Republic of Korea (RS 946.231.127.6) [Entry into force 08- 08-18] Amendment to the Ordinance of 27 August 2014 instituting measures to prevent the circumvention of international sanctions in relation to the situation in Ukraine 15-08-18 (RS 946.231.176.72) [Entry in force 16-08-18] Amendment to the Ordinance of 30 March 2011 instituting measures against Libya (RS 946.231.149.82) [Entry into force 16-08-18] Amendment to the Ordinance of 2 October 2000 instituting measures against 24-08-18 persons and entities related to Osama bin Laden, the “Al Qaeda” group or the Taliban (RS 946.203) [Entry into force 23-08-18] Amendment to the Ordinance of 7 August 1990 instituting economic measures 29-08-18 towards the Republic of Iraq (RS 946.206) [Entry in force 28-08-18]

NON EU-EFTA COUNTRIES TURKEY Added fiscal burdens on US products Following the recent developments, the Decision № 21 of the President of the Republic of Turkey regarding added fiscal burdens (tariffs) on imports of certain products originating from the Resmi Gazete (Official Gazette) dated August 15, 2018 and No. 30510 (“Decision”).

The Decision calls for added fiscal burdens (tariffs) on 22 separate categories of items originating from the US. The additional tariffs range from 4% (petroleum coke, not calcinated) to 140% (automobiles).

“Origin” is defined as the economic nationality of a product, and determination of a product’s origin which is imported into Turkey would be subject to Turkish customs legislation. For instance, in case a product is designed in a country and the parts of this product are put together in another country or the product is pack- aged in another country, added value of each of these processes on the product is generally taken into consideration for the origin determination. In this regard, it would be useful for companies which will import products to Turkey to pay attention to the origin of the product when they are evaluating the Decision.

According to the Decision, an exemption is defined for the goods that already

International Trade Compliance Update | September 2018 79

Baker McKenzie

have a bill of lading to be delivered to Turkey and have been loaded onto transportation vehicles before the publication date of the Decision. The applicable additional fiscal burdens before the Decision will be applied to these products if the customs declaration is not submitted within 45 days commencing from the publication date of the Decision.

The Decision came into force on August 15, 2018 and will be applicable for the relevant item categories that do not fall within the above exemption.

The additional fiscal burdens target the following item categories.

Additional Tariff Fiscal Position Item Description Burden No. (%) 08.02 Other nuts, (fresh or dried), (whether or not shelled or peeled) 20 10.06 Rice 50 2106.90 Others 20 Undenatured ethyl alcohol of an alcoholic strength by volume of less 22.08 140 than 80% by volume; spirits, liqueurs and other spirituous beverages 24.01 Unmanufactured tobacco; tobacco refuse 60 27.01 Coal; briquettes, ovoids and similar solid fuels manufactured from coal 13.7 Coke and semi-coke of coal, of lignite or of peat, whether or not ag- 2704.00 10 glomerated; retort carbon 2713.11 Not calcinated 4 Beauty or make-up preparations and preparations for skincare (other 33.04 than medicaments), including sunscreen or suntan preparations; mani- 60 cure or pedicure preparations Poly (vinyl chloride), not mixed with any other substances (Polymers of 3904.10 50 vinyl chloride or of other halogenated olefins, in primary forms) 3908.10 Polyamides in primary forms -6, -11, -12, -6,6, -6,9, -6,10 or -6,12 10 Other articles of plastics and articles of other materials underheadings 39.26 60 39.01 to 39.14 Fuel wood, in logs, in billets, in twigs, in faggots or in similar forms; 44.01 wood in chips or particles; sawdust and wood waste and scrap, whether 10 or not agglomerated in logs, briquettes, pellets or similar forms Uncoated paper and paperboard, of a kind used for writing, printing or other graphic purposes, and non-perforated punch cards and punch- 48.02 tape paper, in rolls or rectangular (including square) sheets, of any size, 20 other than paper of heading 48.01 or 48.03; handmade paper and paperboard Uncoated kraft paper and paperboard, in rolls or sheets, other than 48.04 20 those under heading 48.02 or 48.03 Paper, paperboard, cellulose wadding and webs of cellulose fibers, coated, impregnated, covered, surface-colored, surface-decorated or 48.11 50 printed, in rolls or rectangular (including square) sheets, of any size, other than the goods described in heading 48.03, 48.09 or 48.10 5502.10 Made from cellulose acetate (Artificial filament tow) 60 7308.90 Others 60 8413.70 Other centrifugal pumps 20 8479.89 Others 20 Motor cars and other motor vehicles principally designed for the 87.03 transport of persons (other than those of heading 87.02), including sta- 120 tion wagons and racing cars 9022.19 Used for other purposes 10

For additional information, please contact the authors, Erdal Ekinci, Birtürk Aydın and Can Sözer, Esin Attorney Partnership.

Legislation (laws, resolutions, orders, etc.)

International Trade Compliance Update | September 2018 80

Baker McKenzie

The following documents were published in the on-line T.C. Resmî Gazete.

Date Subject Decision on the Implementation of Safeguard Measures in Imports of Wall Pa- per and Similar Wall Coatings (Decision Number: 18) 10-08-18 Supplementary Decision on Import Regime Decision (Decision Number: 19) Supplementary Decision on Import Regime Decision (Decision Number: 20) Decision on the Amendment of the Decision on the Implementation of Addition- al Financial Obligations in the Importation of Certain Products Originated in the United States of America (Decision Number 21) Decision on the Amendment of the Decision on the Determination of Value 15-08-18 Added Tax Rates to be Applied to Goods and Services (Decision Number: 22) Decision on the application of tariff quotas for the import of certain agricultural products (Decision Number: 23) Communiqué on the Prevention of Unfair Competition in Imports (No: 2018/26) Communiqué on the Prevention of Unfair Competition in Imports (No: 2018/27) Regulation on the Amendment of the Regulation on the Arrangement of Veteri- nary Controls at the Entry of the Products into the Country 20-08-18 Communiqué on the Amendment of the Communiqué on Determination of Health and Technical Conditions in Cattle Meat Importation (Communiqué No: 2017/43) (No: 2018/37)

UKRAINE Legislation (laws, resolutions, orders, etc.) The following Ukrainian Laws (Закон України), Resolutions (Постанова), Presi- dential Decrees (Указ Президента), Decrees of the Cabinet of Ministers (Розпорядження Кабінету Міністрів України), Regulations (Положення), Agency Orders (Наказ) and other pieces of legislation were posted on the Par- liamentary (Верховної Ради) website during the period of coverage of this Up- date:

Date Subject On Amendments to the Rules of border crossing by citizens of Ukraine 22-08-18 Cabinet of Ministers of Ukraine of 22.08.2018 № 619

MIDDLE EAST AND NORTH AFRICA GULF COOPERATION COUNCIL (GCC) Managing VAT in the GCC: Issues emerging from implementation With value added tax introduced in Saudi Arabia and the United Arab Emirates on 1 January 2018, further to the Gulf Cooperation Council VAT Framework Agreement, and the first VAT returns filed on 28 February 2018, businesses are beginning to adapt to the realities of conducting operations in the GCC within the new VAT regime. Although the legislative framework is more advanced than other jurisdictions that have introduced VAT for the first time, teething problems are inevitable in this first phase of implementation. For highlights of the key issues businesses operating in the UAE and Saudi Arabia are grappling with, read the full linked article. The potential introduction of VAT in the four remaining GCC member states of Bahrain, Qatar, Oman, and Kuwait is also discussed.

Authors: Reggie Mezu, Jan Snel, Mirko Marinc, Mark Agnew and Laya Aoun Hani.

MOROCCO

International Trade Compliance Update | September 2018 81

Baker McKenzie Morocco to accept US poultry and poultry products for first time See article under United States above.

EURASIAN ECONOMIC UNION (EAEU) Decisions and recommendations of the Eurasian Economic Com- mission The following Eurasian Economic Commission (EEC) decisions and recommendations have been posted in the documents section of the Eurasian Economic Commission documentation page. In general, only Решения, Распоряжение and Recommendations having a direct effect on international traders are listed.

Publication Title Date

Council (Совет) of the Eurasian Economic Commission Решение № 63 (14-06-18) On Amending Certain Decisions of the Commission of the Cus- toms Union on Goods Imported to the Territory of the Republic of Belarus for the Preparation and Conduct of the Second European Games of 2019 31-07-18 № 64 (14-06-18) On Amendments to Section II of the Unified List of Products (Goods) Subject to State Sanitary and Epidemiological Supervision (Control) at the Customs Border and Customs Territory of the Eurasian Economic Union № 65 (13-07-18) On Amending the Single Commodity Nomenclature for For- eign Economic Activity of the Eurasian Economic Union and the Unified Cus- toms Tariff of the Eurasian Economic Union for certain types of transformers for microwave ovens, as well as some decisions of the Supreme Eurasian Eco- 21-08-18 nomic Council and the Council of the Eurasian Economic Commission № 66 (13-07-18) On the establishment of rates of import customs duties of the Single Customs Tariff of the Eurasian Economic Union in respect of certain types of goods in accordance with the obligations of the Russian Federation in the WTO Council Regulations/Orders № 18 (14-06-18) On the establishment of a system of good laboratory practice 31-07-18 in the Eurasian Economic Union, in line with the principles of good laboratory practice of the Organization for Economic Cooperation and Development Board (Коллегии) of the Eurasian Economic Commission Решения № 124 (31-07-18) On Amending Certain Decisions of the Collegium of the Eur- asian Economic Commission № 125 (31-07-18) On Amending the Decision of the Board of the Eurasian Eco- nomic Commission of October 2, 2012 No. 180 № 126 (31-07-18) On Amending the List of Common Processes within the Eur- asian Economic Union 03-08-18 № 127 (31-07-18) On technological documents regulating information interaction when implemented using the integrated information system of foreign and mutual trade of the general process "Ensuring the exchange of information on the amounts of credited and distributed special, anti-dumping, countervailing duties, as well as the formation, maintenance and use of a database containing such information" № 128 (21-08-18) On technological documents regulating information interaction in the process of realization by means of the integrated information system of the Eurasian Economic Union of the general process "Ensuring the exchange of information between the customs authorities of the member states of the Eurasian Economic Union in the process of monitoring and confirming the 24-08-18 actual export of goods outside the customs territory of the Eurasian Economic Union" № 129 (21-08-18) On the establishment of rates of import customs duties of the Single Customs Tariff of the Eurasian Economic Union with respect to certain types of equipment for fish production № 130 (21-08-18) On the classification of a hydraulic perforator in accordance

International Trade Compliance Update | September 2018 82

Baker McKenzie

Publication Title Date with the single Commodity Nomenclature for Foreign Economic Activity of the Eurasian Economic Union № 131 (21-08-18) On the classification of a submersible hammer in accordance with the single Commodity Nomenclature for Foreign Economic Activity of the Eurasian Economic Union № 132 (21-08-18) On the Program for the development (amendment, revision) of interstate standards containing rules and methods for research (testing) and measurements, including sampling rules necessary for the application and implementation of the requirements of the technical regulations of the Eurasian Economic Union "On Requirements for Mineral Fertilizers" ( ТР ЕАЭС 039/2016) and the implementation of the conformity assessment of technical regulation facilities № 133 (21-08-18) On approval of the list of products in respect of which the submission of the customs declaration is accompanied by the submission of a document on the assessment of compliance with the requirements of the technical regulations of the Eurasian Economic Union "On Requirements for Mineral Fertilizers" (TR EAES 039/2016) № 134 (21-08-18) About the directory of the types of changes made to the registration dossier of a medical device № 135 (21-08-18) On the classifier of types of documents to be drawn up when examining the registration dossier of a medical device № 136 (21-08-18) On approval of the Rules for the implementation of the general process "The use of databases of documents issued by the authorized bodies of the member states of the Eurasian Economic Union, while regulating foreign and mutual trade, including those provided for the performance of customs operations for the purpose of confirming compliance with prohibitions and restrictions" № 137 (21-08-18) On the classification of specialized food products in accordance with the single Commodity Nomenclature for Foreign Economic Activity of the Eurasian Economic Union № 138 (21-08-18) On amending Note 8 to the single commodity nomenclature of foreign economic activity of the Eurasian Economic Union № 139 (21-08-18) On the extension of the antidumping measure in relation to rolling bearings (except needle) originating in the People's Republic of China and imported into the customs territory of the Eurasian Economic Union № 140 (21-08-18) On the fulfillment by the Russian Federation of its obligations 28-08-18 within the framework of the functioning of the internal market of the Eurasian Economic Union № 141 (28-08-18) On the establishment in 2019 of tariff quotas for certain types of agricultural goods imported into the customs territory of the Eurasian Eco- nomic Union, as well as the volume of tariff quotas for these goods imported into the territory of the states members of the Eurasian Economic Union № 142 (28-08-18) On customs declaration of goods delivered by the carrier as 30-08-18 express freight, using a declaration for goods № 143 (28-08-18) On Amending Certain Decisions of the Commission of the Customs Union and the Board of the Eurasian Economic Commission № 144 (28-08-18) On Amending the Decision of the Board of the Eurasian Economic Commission of February 7, 2018 No. 25 Board Распоряжение № 124 (31-07-18) On the introduction of changes to the plan of scientific research work of the Eurasian Economic Commission for 2018 - 2019 03-08-18 № 125 (31-07-18) On Amending the Composition of the Consultative Commit- tee for the Agro-Industrial Complex Board Recommendations № 13 (31-07-18) On the selection of samples (samples) for research (testing) 03-08-18 and measurement of food products in the application and implementation of the requirements of technical regulations of the Eurasian Economic Union 30-08-18 № 15 (28-08-18) On introducing amendments to the Regulations on the addi-

International Trade Compliance Update | September 2018 83

Baker McKenzie

Publication Title Date tion of licensing and other similar payments for the use of intellectual property objects to the price actually paid or payable for imported goods № 16 28-08-18) On the proposals of the Eurasian Economic Commission on measures aimed at reducing the debt of the general government in the Kyrgyz Republic

Classification decisions adopted by the Commission and preliminary decisions adopted by the States-Members The Commission has posted a table which provides a collection of classification decisions under the common tariff adopted by the Commission. A separate website exists for preliminary decisions on the classification of goods adopted by the customs authorities of states - members of the Eurasian Economic Union. The table lists the tariff codes, a description, rationale (GRIs) for the decision.

BELARUS State Customs Committee preliminary decisions on tariff classification The State Customs Committee maintains a searchable database of preliminary decisions on the tariff classification of goods (База данных товаров, в отношении которых принято предварительное решение о классификации). The database has been updated through August 2018. It may be searched by tariff code or description (in Russian).

RUSSIAN FEDERATION Preliminary decisions on tariff classification The Federal Customs Service (FCS) has a searchable on-line database of preliminary decisions on tariff classification through Dec. 2016. It may be searched by tariff code, description (in Russian) or note number. After 2016, see the EEC database, above.

Legislation (acts, resolutions, orders, etc.) The following Russian Federation (RF) Acts, Government Resolutions/Decrees (Постановление Правительства) (GR), Federal Customs Service (FCS) Or- ders and other pieces of legislation were published in the Rossiyskaya Gazeta or the Official Portal for Legal Information (Официальный интернет-портал правовой информации) during the period of coverage of this Update:

Date of Subject Publication Order No. 1073 of the Federal Customs Service of 09.07.2018 "On the Recognition of the Order of the Federal Customs Service of Russia of 03-08-18 February 18, 2014 No. 271 On the Reduction of the List of Documents to be Presented at the Customs Declaration of Goods" (Recorded on August 2, 1981 No. 51765) Order of the Government of the Russian Federation of 08.08.2018 No. 1652-r "On the signing of the Protocol on Cooperation and Interaction of Border Agen- 10-08-18 cies to the Agreement on Cooperation in the Field of Security in the Caspian Sea of November 18, 2010" Decree of the Government of the Russian Federation No. 935 of August 13, 16-08-18 1981 "On the introduction of a temporary quantitative restriction on the import

International Trade Compliance Update | September 2018 84

Baker McKenzie

Date of Subject Publication of ozone-depleting substances into the Russian Federation in 2018" Order No. 1240 of the Federal Customs Service of 08.08.2018 "On the recognition of the Order of the State Customs Committee of Russia No. 564 of 13 May 2004 on the approval of the Regulation on the organization of 28-08-18 inspections of information systems, information technologies and their means used by participants in foreign economic activity" (Registered 08/31/2018 № 52005) Order of the Federal Customs Service No. 1239 of 06.08.2018 "On the Recognition of the Order of the State Customs Committee of Russia of 29-08-18 December 5, 2003 No. 1400" On the Approval of the Instruction on the Specif- ics of Customs Transactions in Relation to Goods Traversed by Rail Transport "and the Amendments thereto (Registered 08/08/2018 № 52012) Order of the Federal Customs Service of 6.8.2018 number 1233 "On the Annulment of the order of the State Customs Committee of Russia 31-08-18 August 9, 2000 № 01-99 / 928" About the customs privileges granted to persons who move from Kyrgyzstan to Russia and from Russia to Kyrgyzstan " ( It was registered on August 30, 1981 № 52031)

Africa

SOUTH AFRICA South African Customs and Excise Act Amendments of Rules and Tariff Schedules

Publication Implemen- Date Subject Details tation Date Imposition of provisional payment in in the form of safeguard duty on imports of other screws, fully 03-08-18 GG.41812 threaded with hexagon heads, made of steel – ITAC up to and R.792 Report No. 589 including 18-02-19 • Notice R.792 Amendment in Part 2 of Schedule No. 4 by the insertion of rebate items 460.15/7216.32/01.06 and 460.15/7216.33/01.06 in order to create a rebate fa- GG.41812 cility for the importation of certain structural steel in R.793 the form of H and I sections classifiable in tariff subheadings 7216.32 and 7216.33 – ITAC Report No. 577 • Notice R.793 03-08-18 Amendment in Part 1 of Schedule No. 1 by the substitution of tariff subheading 3901.40 to reduce the GG.41812 rate of customs duty on ethylene-alpha-olefin copol- 03-08-18 R.794 ymers having a specific gravity of less than 0.94 from 10% to free – ITAC Report No. 584 • Notice R.794 Amendment of Part 1 of Schedule No. 1, by the substitution of tariff subheadings 1701.12, 1701.13, 1701.14, 1701.91, and 1701.99 to increase the rate GG.41818 of customs duty on sugar from 233.81c/kg to R.798 419.52c/kg due to the increase in the Dollar-Based Reference Price on sugar from US$566/ton to US$680/ton – ITAC Report No. 588 • Notice R.798 Amendment in Part 3 of Schedule No. 2, by the sub- up to and GG.41828 10-08-18 stitution of safeguard item 260.03/72.08/01.04 to ex- including R.811 clude rebate items 460.15/7208.25/01.06 and 10-08-18

International Trade Compliance Update | September 2018 85

Baker McKenzie

Publication Implemen- Date Subject Details tation Date 460.15/7208.26/01.06 in order to exclude certain hot- rolled coils from being subject to safeguard duty – ITAC Report 580 • Notice R.811 Amendment in Part 3 of Schedule No. 2, by the substitution of safeguard item 260.03/72.08/01.04 to exclude rebate items 460.15/7208.25/01.06 and 11-08-18 GG.41828 460.15/7208.26/01.06 in order to exclude certain hot- up to and R.812 rolled coils from being subject to safeguard duty – including ITAC Report 580 10-08-19 • Notice R.812 Amendment in Part 3 of Schedule No. 2, by the substitution of safeguard item 260.03/72.08/01.04 to exclude rebate items 460.15/7208.25/01.06 and 11-09-19 GG.41828 460.15/7208.26/01.06 in order to exclude certain hot- up to and R.813 rolled coils from being subject to safeguard duty – including ITAC Report 580 10-08-20 • Notice R.813 Amendment in Part 2 of Schedule No. 4 by the insertion of rebate item 460.15/7208.25/01.06 and GG.41828 460.15/7208.26/01.06 in order to create a rebate fa- 10-08-18 R.814 cility on certain hot-rolled coils classifiable in tariff subheading 72.08 – ITAC Report 580 • Notice R.814 Amendment in Part 3 of Schedule No. 2, by the substitution of safeguard items 260.03/72.08/01.04, 260.03/7225.40/01.06 and 260.03/7225.99/01.06 to exclude rebate item range 460.15/7208.5/08.05 to up to and GG.41828 460.15/7208.5/12.05; 460.15/7225.40/10.06 to including R.815 460.15/7225.40/14.06 and rebate item 460.15/7225.99/02.06 in order to exclude certain hot- 10-08-18 rolled steel plates from being subject to safeguard duty – ITAC Report 582 • Notice R.815 Amendment in Part 3 of Schedule No. 2, by the substitution of safeguard items 260.03/72.08/01.04, 260.03/7225.40/01.06 and 260.03/7225.99/01.06 to exclude rebate item range 460.15/7208.5/08.05 to 11-08-18 GG.41828 460.15/7208.5/12.05; 460.15/7225.40/10.06 to up to and R.816 460.15/7225.40/14.06 and rebate item including 460.15/7225.99/02.06 in order to exclude certain hot- 10-08-19 rolled steel plates from being subject to safeguard duty – ITAC Report 582 • Notice R.816 Amendment in Part 3 of Schedule No. 2, by the substitution of safeguard items 260.03/72.08/01.04, 260.03/7225.40/01.06 and 260.03/7225.99/01.06 to exclude rebate item range 460.15/7208.5/08.05 to 11-08-19 GG.41828 460.15/7208.5/12.05; 460.15/7225.40/10.06 to up to and R.817 460.15/7225.40/14.06 and rebate item including 460.15/7225.99/02.06 in order to exclude certain hot- 10-08-20 rolled steel plates from being subject to safeguard duty – ITAC Report 582 • Notice R.817 Amendment in Part 2 of Schedule No. 4 by the insertion of various rebate items applicable to tariff head- GG.41828 ing 72.08, tariff subheadings 7225.40 and 7225.99 10-08-18 R.818 respectively in order to create a rebate facility on certain hot-rolled steel plates – ITAC Report 582

International Trade Compliance Update | September 2018 86

Baker McKenzie

Publication Implemen- Date Subject Details tation Date

• Notice R.818 Amendment in Part 3 of Schedule No. 2, by the substitution of safeguard items 260.03/72.08/01.04, and 260.03/7225.40/01.06 to exclude rebate item range 460.15/7208.36/01.06 to 460.15/7208.37/01.06; up to and GG.41828 460.15/7208.5/13.05 to 460.15/7208.5/17.05; and including R.819 460.15/7225.40/15.06 to 460.15/7225.40/18.06 in order to exclude certain hot-rolled steel plates and 10-08-18 hot-rolled steel coils from being subject to safeguard duty – ITAC Report 583 • Notice R.819 Amendment in Part 3 of Schedule No. 2, by the substitution of safeguard items 260.03/72.08/01.04, and 260.03/7225.40/01.06 to exclude rebate item range 460.15/7208.36/01.06 to 460.15/7208.37/01.06; 11-08-18 GG.41828 460.15/7208.5/13.05 to 460.15/7208.5/17.05; and up to and R.820 460.15/7225.40/15.06 to 460.15/7225.40/18.06 in including order to exclude certain hot-rolled steel plates and 10-08-19 hot-rolled steel coils from being subject to safeguard duty – ITAC Report 583 • Notice R.820 Amendment in Part 3 of Schedule No. 2, by the substitution of safeguard items 260.03/72.08/01.04, and 260.03/7225.40/01.06 to exclude rebate item range 460.15/7208.36/01.06 to 460.15/7208.37/01.06; 11-08-19 GG.41828 460.15/7208.5/13.05 to 460.15/7208.5/17.05; and up to and R.821 460.15/7225.40/15.06 to 460.15/7225.40/18.06 in including order to exclude certain hot-rolled steel plates and 10-08-20 hot-rolled steel coils from being subject to safeguard duty – ITAC Report 583 • Notice R.821 Amendment in Part 2 of Schedule No. 4 by the insertion of various rebate items applicable to tariff heading 72.08 and tariff subheading 7225.40 respectively GG.41828 in order to create a rebate facility on certain hot-rolled 10-08-18 R.822 steel plates and hot-rolled steel coils – ITAC Report 583 • Notice R.822 Amendment to Part 1 of Schedule No. 1, by the substitution of tariff subheadings 1001.91 and 1001.99 as well as 1101.00.10 and 1101.00.90 to increase the GG.41863 rate of customs duty on wheat and wheaten flour 24-08-18 24-08-18 R.896 from 28,17c/kg and 42,26c/kg to 64,06c/kg and 96,09c/kg respectively, in terms of the existing variable tariff formula – Minute 08/2018 • Notice R.896 Amendment to Part 2 of Schedule No. 4 by the insertion of rebate item 460.16/8523.52.10/01.08 in order to create a temporary rebate facility on digital smart GG.41871 cards (excluding proximity cards and tags) classifia- 31-08-18 R.916 ble in tariff subheading 8523.52.10 – ITAC Report 581 31-08-18 • Notice R.916 Amendment to Part 3 of Schedule No. 2, by the substitution of safeguard item 260.03/72.08/01.04 and 31-08-18 GG.41871 260.03/7225.40/01.06 to exclude rebate items up to and R.913 460.15/7208.51/01.06 and 460.15/7225.40/19.06 in including order to exclude certain hot-rolled carbon steel plates 10-08-19 from being subject to safeguard duty – ITAC Report

International Trade Compliance Update | September 2018 87

Baker McKenzie

Publication Implemen- Date Subject Details tation Date 585 • Notice R.913 Amendment to Part 3 of Schedule No. 2, by the substitution of safeguard item 260.03/72.08/01.04 and 260.03/7225.40/01.06 to exclude rebate items 11-08-19 GG.41871 460.15/7208.51/01.06 and 460.15/7225.40/19.06 in up to and R.914 order to exclude certain hot-rolled carbon steel plates including from being subject to safeguard duty – ITAC Report 10-08-20 585 • Notice R.914 Amendment to Part 2 of Schedule No. 4 by the insertion of rebate item 460.15/7208.51/01.06 and 460.15/7225.40/19.06 in order to create a rebate fa- GG.41871 cility on certain hot-rolled carbon steel plates classifi- 31-08-18 R.915 able in tariff subheading 720851 and 7225.40 – ITAC Report 585 • Notice R.915

Trade compliance enforcement actions - import, export, IPR, FCPA

The links below will take you to official press releases and summaries of administrative and judicial trade compliance enforcement actions (arrests, indictments, penalties, seizures, convictions, debarments, etc.) involving US and foreign import, export, FCPA/anti-bribery, IPR border enforcement and related matters. Child pornography, controlled substance and currency related seizures and arrests will not be listed, unless connected to trade violations. [Foreign government cases are preceded by the letter (F) in parenthesis].

[Agency abbreviations: US agencies - APHIS= Animal & Plant Health Inspection Service; ATF=Bureau of Alcohol, Tobacco, Firearms and Explosives; BIS= Bureau of Industry and Security, Office of Export Enforcement (Commerce); CBP=US Customs and Border Protection; CPSC=Consumer Product Safety Commission; DDTC= State Dep’t Directorate of Defense Trade Controls; DOJ=Department of Justice, including US Attorneys; DEA=Drug Enforcement Administra- tion; DoD=Dep’t of Defense components [NCIS, DCIS, CID, etc.); FBI=Federal Bureau of Investiga- tion; FDA= US Food and Drug Administration; FRB= Federal Reserve Board of Governors; FTC= Federal Trade Commission; FWS= US Fish & Wildlife Service; GSA= General services Administra- tion; HSI=US Immigration and Customs Enforcement, Homeland Security Investigations; NO- AA=National Oceanic and Atmospheric Administration; OFAC=Office of Foreign Assets Control (Treasury); SEC=Securities and Exchange Commission; USCG= US Coast Guard; USPIS=Postal Inspection Service; USDA= US Department of Agriculture; DSS= Diplomatic Security Service. Local agencies - PD = Police departments; Non-US agencies - CBSA= Canada Border Services Agency; RCMP= Royal Canadian Mounted Police; SAT=Mexican Customs; HKCE= Hong Kong Customs & Excise; SFO = UK Serious Fraud Office.]

Date of Subject Release New York Man Sentenced to Prison for Trafficking in Endangered Lion and Tiger Parts (DOJ, FWS, NYS) 08-01-18 Business Executive Arrested on Foreign Bribery Charges in Connection With Venezuela Bribery Scheme (DOJ, ICE) In the Matter of Mohawk Global Logistics Corp. f/k/a Mohawk Customs and Ship- ping Corp. settlement of alleged EAR violations (BIS) 08-07-18 5 charged in multimillion dollar counterfeiting scheme following ICE HSI investigation (DOJ, ICE, NYPD, CBP) California Man Pleads Guilty to Conspiring to Violate U.S. Sanctions Against Syria 08-14-18 (DOJ, BIS, FBI, IRS)

International Trade Compliance Update | September 2018 88

Baker McKenzie

Date of Subject Release Los Angeles-area man pleads guilty in scheme to violate US sanctions against 08-15-18 Syria (DOJ, ICE, FBI, BIS, IRS) 33 charged in half a billion dollar smuggling scheme of counterfeit luxury goods (DOJ, ICE, state and local police, local District Attorneys) 08-16-18 22 Charged With Smuggling Millions of Dollars of Counterfeit Luxury Goods From China Into the United States (DOJ, ICE, CBP, NYPS, NYSPD, local District Attor- neys) Former Swiss Bank Executive Pleads Guilty to Role in Billion-Dollar International Money Laundering Scheme Involving Funds Embezzled from Venezuelan State- 08-22-18 Owned Oil Company (DOJ, ICE, CBP, UK, Italian, Spanish, Maltese authorities) Canadian Sentenced to 3+ Years in Prison for Conspiracy to Export Restricted Goods and Technology to Iran (DOJ, ICE) Citibank, NA, [$60,000] to Settle Alleged Antiboycott Violations under 15 C.F.R. 08-27-18 760.2 (BIS) Colorado woman sentenced to 3 years in federal prison for illegally exporting fire- 08-30-18 arms to the Dominican Republic (DOJ, ICE, ATF)

Newsletters, Reports, Articles, Etc. Baker & McKenzie Global VAT/GST Newsletter Baker & McKenzie’s Global VAT/GST Newsletter provides a quick update into important developments in the field of VAT/GST across the globe. In order to maximize the effectiveness of this newsletter to you, most articles are brief and are designed to flag topics that are likely to affect multi-national businesses. Con- tacts for the Global VAT/GST Newsletter are:

• Jochen Meyer-Burrow, Partner, [email protected] • Martin Morawski, Associate, [email protected]

Publications - Client publications list Click here to see list of Baker McKenzie publications and alerts.

Publications, Alerts, Newsletters The following Baker & McKenzie publications, client alerts, legal alerts, newsletters or Insight articles released during the period of coverage of this Update may be of interest to you:

Subject

International Trade, Tax and Anti-corruption Global International Trade Compliance Update – August 2018 {older issues} International Commercial and Trade Client Alert: President Trump Expected to Sign the For- eign Investment Risk Review Modernization Act, Most Important Reforms to CFIUS in Thirty Years Vietnam Tax Client Alert: Draft of amended law on tax administration Thailand: Bangkok Tax Client Alert: Thailand’s Private Trust Act is Approved by the Cabinet Increase in the Venezuelan Financial Transactions Tax rate from 0.75% to 1% CFIUS Reform: How Private Equity Funds Are Affected Doing Business in the Philippines Baker McKenzie's Response to the Call for Evidence by the House of Lords Select Commit- tee on the Bribery Act 2010 Perú Tributario Alerta Legal: Se Establecen Nuevas Normas que Buscan Perfeccionar el Tratamiento Tributario Preferencial Aplicable a los FIRBI y FIBRA (Span. Only)

International Trade Compliance Update | September 2018 89

Baker McKenzie

Subject

Other areas Kazakhstan Amends its IP Legislation Ukraine Healthcare Newsletter August 2018 The Global Employer Monthly eAlert Medical Devices are Subject to New Notification and Registration Requirements in the Philip- pines UK Pensions Update - August 2018 Webinars, Meetings, Seminars, Etc. .

We are very pleased to announce our 15th annual Global Trade and Supply Chain Webinar Series entitled, “2018: Continuing Challenges in Global Trade”. The series will include the latest international trade developments including the impact of the Trump presidency on trade policy, TPP and of Brexit. In addition to our usual topics of Customs and export controls/sanctions, we will also cover Human Rights, Forced Labor, and Ethical Supply Chains.

This year, we will again expand our usual program to include our Customs Academy, which will feature 6 “Customs 101” webinars ( highlighted in green below). The Customs 101 program will be primarily aimed at participants who are new to Customs and/or those who would like a refresher and will include introductory sessions on key Customs topics such as tariff classification, valuation and origin; and an overview of Customs in some key jurisdictions.

Terrie Gleason, a partner in our San Francisco, CA office and Head of the Firm's Global Customs Focus Group, and Jenny Revis, a partner in our London office, will moderate these webinars and be joined by experts from across our global network.

All webinars will begin at 11:00 AM Eastern (US) and are scheduled to run approximately 90 minutes. If you reside in a different time zone and wish to verify your time - please click on the following link: www.timeanddate.com. If you miss a webinar that has already been given, wish to see it again or want to download a presentation, you may do so at this link or by clicking the blue title below which indicates the material has been posted. Webinars are usually posted approximately two weeks after the live presentation.

Human Rights, Forced Labor, and Ethical Sup- To register for this complimentary January 30 ply Chains: Best Practices for Managing Grow- webinar series, click on the REG- ing Legal Obligations and Risks ISTER NOW button and provide your information. You can register for Speakers: Reagan Demas (DC), John Foote one or all webinars. January 30 (DC), Francesca Richmond (London), and Christopher Burkett (Toronto) We hope you will participate in and enjoy this exciting webinar series!

Customs Basic: How to Classify Your Products February 27 Login Details:

Log-in details will be sent via email Jose Hoyos-Robles (Mexico City), Speakers: one week before the event. Olof Johannesson (Stockholm), Andrew Rose

(London), and Riza Buditomo (Jakarta) Webinar Series Lead:

International Trade Compliance Update | September 2018 90

Baker McKenzie

Teresa A. Gleason Hot Topics in US, European, and Asian Ex- Head, Global Customs Focus March 27 port Controls Group (San Francisco, CA)

Tel: +1 415 576 3021 Speakers: Marc Lager (Vienna), Anne Petterd teresa.gleason (Singapore), and Alex Lamy (DC) @bakermckenzie.com Customs Basic: How to determine the origin of April 24 your products These webinars are all compli- Speakers: Adrianna Ibarra-Fernandez (Mexico mentary. City), Jessica Mutton (London), and John McKenzie (Palo Alto) Russian and EU Customs Update May 22 Speakers: Alexander Bychkov (Moscow), Questions: Nicole Looks (Frankfurt) and Jenny Revis If you have any questions regard- (London) ing this webinar series, please contact: June 26 Customs Basic: How to value your products Sal Gonzalez Speakers: Kevin Nordin (London), Jon Cow- Business Development Specialist ley (Hong Kong) and Brian Cacic (Toronto) Tel: +1 202 835 1661 [email protected] Update on US “Protectionism”, Brexit and TPP July 24 MCLE Credit: Speakers: Terrie Gleason (San Francisco), Approved for 1.5 California general CLE Stu Seidel (DC) and Jenny Revis (London), credits, 1.5 Illinois general CLE credits, and Fred Burke (Ho Chi Minh) 1.5 New York areas of professional practice CLE credits, and 1.5 Texas Customs Basic: What you need to know general CLE credits. Florida and Virgin- August 28 about importing into China, Russia and the ia CLE applications can be made upon Middle East request. Participants requesting CLE for other states will receive Uniform CLE Speakers: Frank Pan (Shanghai), Vladimir Certificates. Efremov (Moscow), and Reggie Mezu (Middle Baker & McKenzie LLP is a California East) and Illinois CLE approved provider. Customs Audits and Enforcement Actions: Baker & McKenzie LLP has been certi- September 25 Best Practices and Trends fied by the New York State CLE Board as an accredited provider in the state of Speakers: Adriana Ibarra-Fernandez (Mexi- New York for the period 12/12/15- co), Nicole Looks (Frankfurt), and Meredith 12/11/18. This program may earn newly admitted New York attorneys credit DeMent (DC) under Areas of Professional Practice. Customs Basic: What you need to know Baker & McKenzie LLP is an accredited October 30 about importing into Mexico, Brazil and sponsor, approved by the State Bar of Argentina Texas, Committee on MCLE.

Speakers: Manuel Padron (Juarez), Alessan- dra Machado (Sao Paolo), and Esteban Ropo- lo (Buenos Aires) Hot Topics in US, European, and Asian November 27 Trade Sanctions

Speakers: Kerry Contini (DC), Ben Smith (London), and Jon Cowley (Hong Kong) Pending - We have applied for CES and Customs Basic: How to mitigate duties CCS credit for these webinars to the December 18 through use of customs procedures National Customs Brokers & Forward- ers Association of America, Inc. Speakers: Eunkyung Kim Shin (Chicago), Edith Salcedo-Hinojosa (Guadalajara), and Daniel Sanchez-Elizondo (Guadalajara)

International Trade Compliance Update | September 2018 91

Baker McKenzie

November 14-15, 2018 | Santa Clara, CA & Webcast This conference is complimentary, but Save the Date! registration is required.

Each year, Baker McKenzie trade compliance lawyers from around the world come together to present a year-end review of import and export developments. The timing of this year’s event is particularly important given the developing “trade wars” initiated by the US Gov- ernment with China, the EU, Canada and Questions? Mexico.

Mark your calendars for this year's two-day Logistics & Continuing conference, which will be held Wednesday, Education Credit November 14 through Thursday, Novem- Liz Rittinger ber 15 at the Hyatt Regency in Santa Clara, Tel: +1 415 984 3853 California. elizabeth.rittinger @bakermckenzie.com If you are unable to attend the conference in person, we will again offer a live webcast op- Programming & Materials tion. Please just indicate if you will attend in Jen Weiner person or via webcast on your registration Tel: +1 312 861 8320 form. jennifer.weiner @bakermckenzie.com Due to anticipated high demand, you can register now by clicking here and com- CLE and CES/CCS credit will be available pleting the registration form. You will receive a registration confirmation email approximately six weeks prior to the event.

A formal email invitation with additional details as well as the agenda will be distributed in the coming months. Visit We hope you will be able to join us! www.internationaltradecomplianceupdate.com for additional information about our practice and the John McKenzie latest global legal developments impacting inter- Host Partner national trade.

Visit sanctionsnews.bakermckenzie.com/ for sanctions news and updates.

International Trade Compliance Update | September 2018 92

Baker McKenzie

Related Conferences:

London - Annual Anti-Bribery and International Trade Conference 24-27 September 2018 Contact [email protected] for more information or to request an invitation.

Amsterdam - International Trade & Compliance Conference - 19-20 September 2018 Contact [email protected] for more information or to request an invitation.

RECORDED SESSIONS FROM OUR ANNUAL YEAR-END REVIEW OF IMPORT/EXPORT DEVELOPMENTS IN SANTA CLARA, CALIFORNIA 14 November 2017 – Year-End Review of Import/Export Developments (Export Day)

AM Sessions Recording – • Export Control Developments in the United States and European Union • Encryption Export Controls and Cloud Computing: A Comparative Analysis • United States Economic Sanctions Update & Russian Response to US Sanctions PM Sessions Recording – • Economic Sanctions: A Comparative Analysis • Export Enforcement (panel format did not include slides) • Export Control Developments in the Asia Pacific Region • Arab States Boycott of Qatar and the Implications Under the United States Anti- Boycott Regulations

15 November 2017 – Year-End Review of Import/Export Developments (Import Day)

AM Sessions Recording – • The Current International Trade Environment: Challenges to Globalization and its Impact on the Supply Chain • Trade Policies and Initiatives Under the Trump Administration • The NAFTA Renegotiation: A Multinational Perspective • United States and Canadian Customs Regulatory Update PM Sessions Recording – • European Union Customs and Trade Developments • Emerging Impediments to the Import of IT Products into China • Latin American Trade Developments

International Trade Compliance Update | September 2018 93

Baker McKenzie

2017 Global Trade and Supply Chain Webinar Series “2017: Beginning of a New Era in Global Trade and Business?” Our 14th annual, Global Trade and Supply Chain Webinar Series entitled, “2017: Begin- ning of a New Era in Global Trade and Business?” included the latest international trade developments including the impact of the Trump presidency on trade policy and of Brexit. In addition to our usual topics of Customs, export controls/sanctions and FCPA/anti-bribery, the 2017 series also covered data privacy and intellectual property in the supply chain.

In 2017, we expanded our usual program to launch our Customs Academy, featuring 6 “Cus- toms 101” webinars (indicated in green). The Customs 101 program is primarily aimed at participants who are new to Customs and/or those who would like a refresher and will include introductory sessions on key Customs topics such as tariff classification, valuation and origin; and an overview of Customs in some key jurisdictions. Terrie Gleason, a partner in our San Francisco office and Head of the Firm’s Global Customs Focus Group, and Jenny Revis, Of Counsel in the London office, will moderate these webinars and be joined by experts from across our global network. All webinars begin at 11:00 AM Eastern (US) and are scheduled to run approximately 90 minutes. If you reside in a different time zone and wish to verify your time - please click on the following link: www.timeanddate.com. If you missed a webinar that has already been given, wish to see it again or want to download a presentation, you may so at this new link or by clicking the blue title below which indicates the material has been posted.

Webinar Dates and Topics:

January 31 Major Customs Developments in North America and Asia Speakers: Stu Seidel (Washington, DC), Brian Cacic (Toronto), Eugene Lim (Singapore), and Adriana Ibarra-Fernandez (Mexico City)

February 28 Customs Basic: How to Classify Your Products Speakers: Daniel Lund (London), Jose Hoyos-Robles (Mexico City), and Eunkyung Shin (Chicago) New Era of Protectionism? – March 28 Trump Presidency and Brexit Developments Speakers: Terrie Gleason and Stu Seidel (Washington DC), Ross Denton and Jessica Mutton (London)

April 25 Customs Basic: How to Value Your Products Speakers: Nicole Looks (Frankfurt), Eugene Lim (Singapore), Paul Burns (Toronto), and Daniel Sanchez-Elizondo (Guadalajara) Impact on Sanctions: Trump Administration’s Effects on US, EU, and Russian May 23 Sanctions Speakers: Alexander Bychkov (Moscow), Ben Smith (London), Alex Lamy (Washington, DC) and Ali- son Stafford Powell (Palo Alto)

June 27 Customs Basic: Determining the Origin of Your Products Speakers: Olivia Colville (Chicago), Jessica Mutton (London), and Adriana Ibarra-Fernandez (Mexico City)

July 25 Major Developments in Data Privacy Laws – US, Canada and EU Speakers: Brian Hengesbaugh (Chicago), Dean Dolan (Toronto), Dyann Heward-Mills (London), Mi- chael Egan (Washington, DC) Customs Basic: Reducing your Duty Liability Through the Use of Customs August 22 Procedures Speakers: Roger van de Berg (Amsterdam), Eunkyung Kim Shin (Chicago), Manuel Padron-Castillo (Juarez), and Panya Sittisakonsin (Bangkok)

September 19 Intellectual Property Considerations and Issues in Your Supply Chain

International Trade Compliance Update | September 2018 94

Baker McKenzie

Speakers: Gary Shapiro (San Francisco), Lothar Determann (Palo Alto), Jochen Herr (Munich), Isabel- la Liu, Kei Matsumoto, Flavia, Rabello Customs Basic: What You Need to Know about Customs in the EU, Russia and October 24 China Speakers: Mariacristina Scarpa and Giulia Bettarini (Milan), Alexander Brychov and Vladimir Efremov (Moscow), and Frank Pan (Shanghai)

November 28 Major Developments in FCPA/Anti-Bribery Regulation Speakers: John McKenzie (San Francisco), Mini vandePol (Hong Kong), and Peter Tomczak (Chicago) Customs Basic: What You Need to Know about Customs in the US, Mexico and December 19 Brazil Speakers: Alejandro Martinez-Galindo (Guadalajara), Alessandra S. Machado (Sao Paulo), Meredith DeMent (Washington, DC), and Meghan Hamilton (Chicago)

WTO TBT Notifications

Member countries of the World Trade Organization (WTO) are required under the Agreement on Technical Barriers to Trade (TBT Agreement) to report to the WTO all proposed technical regulations that could affect trade with other Member countries. The WTO Secretariat distributes this information in the form of “notifications” to all Member countries. This chart summarizes notifications in English posted by the WTO during the past month. If you are interested in obtaining copies of any of these notifications, please contact stu- [email protected] who will try to obtain the text. Some notifications are only available in the official language of the country publishing the notification. Note: All dates are given as mm/dd/yyyy; National flags are not scaled for relative comparison.

Final Date Country Notification Date Issued for Merchandise Covered Comments

Argentina ARG/111/Add.1 08/07/2018 Not given Footwear Other footwear with outer soles and uppers of rubber or plastics (HS 6402), Footwear with outer soles of rubber, plastics, leather or composition leather and uppers of leather (HS 6403), Footwear with ARG/338 08/07/2018 10/6/2018 Argentina outer soles of rubber, plastics, leather or composition leather and uppers of textile materials (HS 6404), Other footwear (HS 6405) - Other footwear: (HS 64019) Argentina ARG/339 08/08/2018 10/07/2018 Construction cements; Portland cement (HS 25232) Steel wire ropes; Steel wire, wire ropes and link ARG/340 08/09/2018 10/08/2018 Argentina chains Lamps for general lighting services; Electric filament or discharge lamps, including sealed beam ARG/341 08/16/2018 10/15/2018 Argentina lamp units and ultra-violet or infra-red lamps; Arc- lamps (HS 8539) Argentina ARG/305/Add.1 08/17/2018 Not given Lifts and lift components Furniture in general; Other furniture and parts ARG/342 08/28/2018 Not given Argentina thereof (HS 9403)

Bahrain, Kingdom of BHR/544 07/31/2018 09/29/2018 Paneer Cheese Bahrain, Kingdom of BHR/545 07/31/2018 09/29/2018 Ricotta Cheeses

International Trade Compliance Update | September 2018 95

Baker McKenzie

Final Date Country Notification Date Issued for Merchandise Covered Comments

Brazil BRA/732/Add.1 08/02/2018 Not given Medicines

Brazil BRA/733/Add.1 08/02/2018 Not given Medicines

Brazil BRA/734/Add.1 08/02/2018 Not given Medicines

Brazil BRA/762/Add.1 08/02/2018 Not given Air conditioning machines (HS 8415)

Brazil BRA/763/Add.1 08/02/2018 Not given Electric transformers (HS 8504)

Brazil BRA/777/Add.1 08/02/2018 Not given Specific medicines

Brazil BRA/779/Add.1 08/02/2018 Not given Food and packaging

Brazil BRA/781/Add.1 08/02/2018 Not given Food supplements and labelling Residues and contaminants in products of animal BRA/825/Add.1 08/06/2018 Not given Brazil origin (HS Code(s) 02; 03)

Brazil BRA/834 08/01/2018 Not given Tomato (HS 0702.00.00)

Brazil BRA/835 08/01/2018 09/15/2018 Thermometers (HS 9025)

Brazil BRA/762/Add.2 08/17/2018 Not given Air conditioning machines (HS 8415)

Brazil BRA/836 08/16/2018 Not given Mineral fertilizers (HS 31) Organic production (HS Code Brazil BRA/826/Add.1 08/28/2018 Not given 01;02;03;04;05;06;07;08;09;10;11;12;13;15;16;17;1 8;19;20;21;22;23) Canada CAN/561 07/27/2018 09/25/2018 All plant, animal and food commodities Phytocannabinoids, Prescription status of medicinal CAN/562 08/09/2018 Not given Canada ingredients for human use Canada CAN/563 08/09/2018 10/03/2018 Radiocommunications Canada CAN/564 08/13/2018 10/12/2018 Radiocommunications Canada CAN/565 08/14/2018 10/3/2018 Radiocommunications Canada CAN/566 08/14/2018 09/29/2018 Radiocommunications

Chile CHL/407/Add.2 07/26/2018 Not given Food for human consumption. Non-refillable metal cartridges for liquefied petrole- Chile CHL/449 07/26/2018 09/24/2018 um gas (LPG), with or without valves, intended for use in portable appliances

Chile CHL/450 08/07/2018 10/06/2018 Electrical appliances for skin and hair care

Chile CHL/451 08/07/2018 10/06/2018 Portable air coolers

Chile CHL/452 08/09/2018 10/08/2018 Gas-fired central heating boilers

Chile CHL/453 08/09/2018 10/08/2018 Gas-fired central heating boilers

Chile CHL/454 08/13/2018 10/12/2018 High-pressure cleaners Condoms - Natural rubber latex male condoms, CHL/455 08/14/2018 10/13/2018 Chile male synthetic condoms, female condoms

Chile CHL/456 08/15/2018 10/14/2018 Adapters for plugs Carbon steel bar grating, grating for flooring and CHL/457 08/21/2018 10/20/2018 Chile steps

International Trade Compliance Update | September 2018 96

Baker McKenzie

Final Date Country Notification Date Issued for Merchandise Covered Comments

China CHN/1279 07/30/2018 09/28/2018 General Hand-held metal detectors Walk-through metal detector that used for metal weapon and metal contraband checking, Walk- CHN/1280 07/30/2018 09/28/2018 China through metal detector for other uses can refer to this standard on implementation

China CHN/1281 07/30/2018 09/28/2018 Micro-dose X-ray security inspection system

China CHN/1282 07/30/2018 09/28/2018 Micro-dose X-ray security inspection system

China CHN/1283 07/30/2018 09/28/2018 Micro-dose X-ray security inspection system

China CHN/1284 07/30/2018 09/28/2018 Micro-dose X-ray security inspection system

China CHN/1285 07/30/2018 09/28/2018 Micro-dose X-ray security inspection system

Colombia COL/196/Add.8 08/02/2018 Not given Biological medicines

Colombia COL/86/Add.7 08/06/2018 Not given Labelling requirements for made-up articles

Colombia COL/229/Add.1 08/14/2018 Not given Chemicals (28.00.00)

Costa Rica CRI/112/Add.1 08/13/2018 Not given Food additives

Costa Rica CRI/118/Add.2 08/10/2018 Not given Biological medicines Costa Rica CRI/179 08/10/2018 10/09/2018 Milk powder and cream powder Instruments and systems measuring the flow vol- Czech Republic CZE/206 08/01/2018 09/30/2018 ume of liquids other than water and of liquefied gas - dispensers for windscreen washer fluid Instruments and systems measuring the flow vol- Czech Republic CZE/207 08/01/2018 09/30/2018 ume of liquids other than water or liquefied gases - dispensers of aqueous urea solution - AdBlue Measuring devices for determining the load per axle CZE/208 08/01/2018 09/30/2018 Czech Republic or wheel of rolling stock Measuring devices for determining the load per axle CZE/209 08/01/2018 09/30/2018 Czech Republic of road vehicles Fixed storage tanks used as instruments for meas- CZE/210 08/01/2018 09/30/2018 Czech Republic uring volume Flow-through type vibrational relative gas density CZE/211 08/01/2018 09/30/2018 Czech Republic transducers Instruments and systems measuring the flow volume of liquids other than water and of liquefied gas CZE/212 08/01/2018 09/27/2018 Czech Republic - dynamic measuring systems for liquids other than water, which are fitted to vehicles and tank-vehicles Hygrometers for cereals and oilseeds; Measuring CZE/213 08/06/2018 10/05/2018 Czech Republic instruments

Czech Republic CZE/214 08/06/2018 10/05/2018 Pure-tone audiometers; Measuring instruments Tendon assemblies for prestressed concrete and CZE/215 08/06/2018 10/05/2018 Czech Republic rock anchors; Measuring instruments Measuring instruments and systems for measuring the flow of liquids other than water - stationary CZE/216 08/06/2018 10/05/2018 Czech Republic measuring systems except for dispensers; Meas- urement of fluid flow

Czech Republic CZE/217 08/06/2018 10/05/2018 Grain testers; Measuring instruments

International Trade Compliance Update | September 2018 97

Baker McKenzie

Final Date Country Notification Date Issued for Merchandise Covered Comments

Instruments for measuring water flow - water meters that are intended for uses other than residen- CZE/218 08/06/2018 10/05/2018 Czech Republic tial, retail, and light industry; Measurement of fluid flow

Czech Republic CZE/219 08/06/2018 10/05/2018 Liquid transport tanks; Measuring instruments Personal sound exposure meters; Acoustics and CZE/220 08/06/2018 10/05/2018 Czech Republic acoustic measurements Measuring instruments used to monitor activity limits and concentration of effluents from nuclear facilities, nuclear raw material mining or processing facilities, radioactive waste processing plants and from the processing or application of radioactive materi- CZE/221 08/06/2018 10/05/2018 Czech Republic als, and also used to determine environmental radiation exposure due to effluents - modules for dis- continuous measurement of activity or concentration by sampling that require specific test procedures; Radiation measurements Spectrometric assemblies for analysing alpha, beta, gamma, and neutron sources or fields - alpha and CZE/222 08/06/2018 10/05/2018 Czech Republic gamma radiation spectrometers; Radiation measurements Non-spectrometric activity meters and dosimeters used to monitor compliance with limits in the area of radiation protection or nuclear safety and for emer- CZE/223 08/06/2018 10/05/2018 Czech Republic gency measurement - electronic personal dosimeters for measuring gamma radiation and X-rays; Radiation measurements Non-spectrometric activity meters and dosimeters used to monitor compliance with limits in the area of Czech Republic CZE/224 08/06/2018 10/05/2018 radiation protection or nuclear safety and for emergency measurement - portable surface contamina- tion meters; Radiation measurements Installed meters, warning assemblies, and dosimetric quantity monitors for gamma radiation and X- CZE/225 08/06/2018 10/05/2018 Czech Republic rays with energies from 50 keV to 1.5 MeV; Radia- tion measurements Non-spectrometric activity meters and dosimeters used to monitor compliance with limits in the area of radiation protection or nuclear safety and for emer- CZE/226 08/06/2018 10/05/2018 Czech Republic gency measurement - portable dosimetric gamma radiation and X-ray meters used for purposes of radiation protection; Radiation measurements Oil filters, diesel and petrol filters, and intake air Ecuador ECU/206/Add.4 08/01/2018 Not given filters for internal combustion engines (HS 8421.23.00.10, 8421.23.00.90 and 8421.31.00.00) Plywood panels (HS 4412.10.00, 4412.31.00, ECU/270/Add.3 08/01/2018 Not given Ecuador 4412.32.00, and 4412.39.00) ECU/12/Rev.1/A 08/15/2018 Not given Ceramic products Ecuador dd.1 Ecuador ECU/32/Add.17 08/15/2018 Not given Motor vehicles (HS 9900) Ecuador ECU/49/Add.9 08/15/2018 Not given Buses (HS 8702.10, 8702.90, 8706.00, 8707.90) Ecuador ECU/87/Rev.1 08/15/2018 Not given Ductless air conditioners (HS 8415.10) Toys (HS 9503.00.10.00, 9503.00.22.00, ECU/108/Add.4 08/15/2018 Not given Ecuador 9503.00.22.10, 9503.00.22.90, 9503.00.28.00,

International Trade Compliance Update | September 2018 98

Baker McKenzie

Final Date Country Notification Date Issued for Merchandise Covered Comments

9503.00.29.00, 9503.00.30.00, 9503.00.40.00, 9503.00.91.00, 9503.00.92.00, 9503.00.93.00, 9503.00.94.00, 9503.00.95.00, 9503.00.96.00 and 9503.00.99.00) Ecuador ECU/31/Rev.1 08/16/2018 Not given Ceramic tiles (HS 6907, 6908) Fans with a self-contained electric motor of an out- ECU/186/Add.4 08/16/2018 Not given Ecuador put not exceeding 125W (HS 8414.51.00) ECU/81/Rev.1/ 08/20/2018 Not given Dummies/pacifiers for babies and young children Ecuador Add.1 ECU/81/Rev.1/ 08/20/2018 Not given Dummies/pacifiers for babies and young children Ecuador Add.2 Motor-driven kitchen appliances (HS 8509.40.10, ECU/240/Add.2 08/17/2018 Not given Ecuador 8509.40.90 and 8509.80.90) Protective footwear and safety footwear 64011000, 64019200, 64019900, 64021900, 64029100, Ecuador ECU/293/Add.2 08/17/2018 Not given 64029910, 64029990, 64034000, 64035100, 64035900, 64039190, 64039990, 64041900, 64051000, 64052000 and 64059000 Ecuador ECU/8/Add.7 08/31/2018 Not given Lubricating oils (HS 2710) El Salvador SLV/147/Add.1 08/15/2018 Not given Food additives El Salvador SLV/154/Add.1 08/15/2018 Not given Pharmaceutical products El Salvador SLV/201 08/15/2018 10/14/2018 Milk powder and cream powder New motor vehicles and systems, components and EU/591 08/01/2018 09/30/2018 European Union separate technical units intended for such vehicles Heavy-duty vehicles (commercial vehicles); EU/592 08/14/2018 10/13/2018 European Union transport CO2 emissions

European Union EU/593 08/20/2018 10/19/2018 Wine products

European Union EU/594 08/27/2018 10/26/2018 Power transformers

France FRA/188 8/23/2018 10/22/2018 Organic amendments

Guatemala GTM/67/Add.1 08/15/2018 Not given Food additives (ICS 67.050)

Guatemala GTM/72/Add.1 08/15/2018 Not given Pharmaceutical products

Guatemala GTM/96 08/15/2018 10/14/2018 Milk powder and cream powder Honduras HND/69/Add.1 08/15/2018 Not given Pharmaceutical products Honduras HND/92 08/15/2018 10/14/2018 Milk powder and cream powder Honduras HND/64/Add.1 08/16/2018 Not given Food additives (ICS 67.050) Indoor/ Outdoor Type Oil Immersed Distribution Transformers up to and including 33kV (HS IND/83 08/16/2018 10/15/2018 India 85042100, 85042200, 85043200, 85043300, 85043400, Indian Standards: IS 1180:2014 Part-I)

India IND/84 08/20/2018 10/19/2018 Cotton Bales ITC (HS 5201) SNI 04-6253-2003 Audio, video and similar electronic apparatus - Safety requirements, consisted in Television sets up to 42 inch screen size including IDN/117/Add.1 08/17/2018 Not given Indonesia the cathode ray tube (CRT)-based TVs (HS 8528.72.91; ex. 8528.72.92; ex.8528.72.99); Porta- ble audio-video player (HS ex. 8519.81.99); Disc

International Trade Compliance Update | September 2018 99

Baker McKenzie

Final Date Country Notification Date Issued for Merchandise Covered Comments

Player VCD (HS 8519.81.30; ex. 8521.90.19; ex.8521.90.99); Disc Player DVD (HS 8519.81.30; ex. 8521.90.19; ex.8521.90.99); Disc Player Blu-ray (HS 8519.81.30; ex. 8521.90.19; ex.8521.90.99); Radio receiver (HS 8527.91.10; ex 8527.91.90; ex 8527.92.20; 8527.99.20; ex 8527.99.90); Head unit mobil (HS ex 8527.21.00; ex 8527.29.00); Audio power amplifier (HS 8518.40.40; 8518.50.10; 8518.50.20; 8518.50.90); Active speaker (HS ex 8518.21.10; ex 8518.21.90; ex 8518.22.10; ex 8518.22.90; ex 8518.29.90); Console video game (HS 9504.50.10; 9504.50.90); Television set top box (HS ex 8528.71.11) Articles for funfair, table or parlour games, including pintables, billiards, special tables for casino games and automatic bowling alley equipment. (HS 9504), - Loudspeakers, whether or not mounted in their enclosures: (HS 85182), - Radio- Broadcast receivers not capable of operating without an external source of power, of a kind used in motor vehicles, including apparatus capable of receiving also radio-telephony or radio- telegraphy: (HS 85272), - Audio-frequency electric amplifiers (HS 851840), - Electric sound amplifier sets (HS 851850), - Other (HS 852190). Equipment for children, Soother holder, Other articles of plastics and articles of other materials of ISR/719/Add.1 07/31/2018 Not given Israel headings 39.01 to 39.14. (HS 3926), Other made up articles, including dress patterns (HS 6307) Drinking water treatment systems (HS 841981, ISR/862/Add.2 07/31/2018 Not given Israel 841989, 842121)

Israel ISR/904/Add.1 07/31/2018 Not given Pasta (HS 1902) Cutlery and feeding utensils for children (HS ISR/911/Add.1 07/31/2018 Not given Israel 392410, 4419, 8215) Toys (HS 3213, 3305, 3407, 3604.90, 3926, Chap- ISR/931/Add.1 07/31/2018 Not given Israel ters 61 and 62, and 9501-9503)

Israel ISR/933/Add.1 07/31/2018 Not given Instant coffee (HS 0901)

Israel ISR/949/Add.1 07/31/2018 Not given Food starch (HS 1108, 1901)

Israel ISR/963/Add.1 07/31/2018 Not given Toys (HS 95)

Israel ISR/964/Add.1 07/31/2018 Not given Toys - Finger paints (HS 95, 3213)

Israel ISR/965/Add.1 07/31/2018 Not given Hinged laminated doors (HS 441820)

Israel ISR/968/Add.1 07/31/2018 Not given Aerials (HS 852910)

Israel ISR/972/Add.1 07/31/2018 Not given Swinging fire doors (HS 441820, 730830)

Israel ISR/974/Add.1 07/31/2018 Not given Bread (HS 1905)

Israel ISR/977/Add.1 07/31/2018 Not given Roasted Coffee

Israel ISR/981/Add.1 07/31/2018 Not given Lighting chains (HS 8512, 8513, 8539, 9405)

Israel ISR/997/Add.1 07/31/2018 Not given Shelf-stable bakery products (HS 1905)

International Trade Compliance Update | September 2018 100

Baker McKenzie

Final Date Country Notification Date Issued for Merchandise Covered Comments

Israel ISR/999/Add.1 07/31/2018 Not given Metal wedge gate valve (HS 8481) Hermetically sealed and rigid metal packing for food ISR/1014 07/31/2018 09/29/2018 Israel products (HS 7310, 7612)

Israel ISR/1015 07/31/2018 09/29/2018 Clay roofing tiles (HS 690510)

Israel ISR/1016 07/31/2018 09/29/2018 Concrete roofing tiles (HS 681099)

Israel ISR/1017 08/07/2018 10/06/2018 Medical syringes (HS 901831, 901832)

Israel ISR/1018 08/07/2018 10/06/2018 Non-alcoholic drinks (HS 2009, 2202)

Israel ISR/1019 08/08/2018 10/07/2018 Medical syringes (HS 90183)

Israel ISR/1020 08/14/2018 10/13/2018 Disposable infants' diapers (HS 9619) Vacuum cleaner and water-suction cleaning appli- ISR/1021 08/27/2018 10/26/2018 Israel ances (HS 850910)

Israel ISR/1022 08/27/2018 10/26/2018 Protective gloves (HS 392620, 401511, 420329) Chemicals used for treatment of water intended for ISR/1023 08/27/2018 10/26/2018 Israel human consumption (HS 283650) Audio/video, information and communication technology equipment (HS 842230, 8437, 8443, 847010, 8471, 8472, 8476, 850440, 850680, 8517, ISR/1024 08/27/2018 10/26/2018 Israel 8518, 8519, 8521, 8525, 8526, 8527, 8528, 8531, 8536, 8543, 9008, 9016, 910610, 9207, 9503, 9504, 9505, 9506) Dangerous substances and mixtures (HS 2707, ISR/726/Rev.1 08/28/2018 Not given Israel 2710, 3402, 3405, 3824) Dangerous chemical substances and mixtures (HS ISR/1025 08/28/2018 10/27/2018 Israel 2707, 2710, 3402, 3405, 3824) Jamaica JAM/72 08/02/2018 09/22/2018 Structural Steel Shapes Jamaica JAM/73 08/02/2018 09/22/2018 Structural Steel for Bridges Jamaica JAM/74 08/02/2018 09/22/2018 High-Strength Low-Alloy Structural Steel High-Strength Low-Alloy Columbium-Vanadium JAM/75 08/02/2018 09/22/2018 Jamaica Structural Steel Jamaica JAM/76 08/02/2018 09/22/2018 High-Strength Low-Alloy Structural Steel Jamaica JAM/77 08/02/2018 09/22/2018 Carbon Structural Steel Rolled Structural Steel Bars, Plates, Shapes, and JAM/78 08/02/2018 09/22/2018 Jamaica Sheet Piling Jamaica JAM/79 08/02/2018 09/22/2018 Structural Steel

Japan JPN/604 07/27/2018 Not given Pharmaceutical products (HS 30)

Japan JPN/605 08/01/2018 09/30/2018 Agricultural Chemicals (Pesticides) (HS 3808) Substances with probable effects on the central JPN/606 08/27/2018 Not given Japan nervous system Food, beverages and other agricultural, forestry and fishery products (including processed products) JPN/448/Add.3 08/30/2018 Not given Japan other than alcoholic beverages and pharmaceuticals.

Kenya KEN/717 07/31/2018 09/09/2018 Food animals welfare

International Trade Compliance Update | September 2018 101

Baker McKenzie

Final Date Country Notification Date Issued for Merchandise Covered Comments

Kenya KEN/718 07/31/2018 09/09/2018 Marinated meat

Kenya KEN/719 07/31/2018 09/09/2018 Deep fried meat

Kenya KEN/720 07/31/2018 09/09/2018 Hay as animal feed

Kenya KEN/721 07/31/2018 09/09/2018 Hay as animal feed

Korea, Republic of KOR/783 08/02/2018 10/01/2018 Electrical appliances, Consumer products

Korea, Republic of KOR/784 08/09/2018 10/08/2018 Appliances Foods, specifically Potato and Foods containing KOR/785 08/14/2018 08/31/2018 Korea, Republic of potato as ingredients

Korea, Republic of KOR/786 08/14/2018 10/13/2018 Quasi-drugs Foods, specifically Potato and Foods containing KOR/785/Add.1 08/31/2018 Not given Korea, Republic of potato as ingredients Kuwait KWT/431 07/31/2018 Not given Paneer Cheese Kuwait KWT/432 07/31/2018 Not given Ricotta Cheeses Mexico MEX/317/Add.2 07/31/2018 Not given Solar water heaters (tariff subheading 8419.19.02) Mexico MEX/362/Add.1 07/31/2018 Not given Motor vehicles Mexico MEX/364/Add.1 07/31/2018 Not given Mobile terminal equipment (87.17.69.10) Mexico MEX/341/Add.1 07/31/2018 Not given Portable cooking appliances (tariff heading 84.38) Onshore storage facilities for petroleum products MEX/379/Add.2 08/01/2018 Not given Mexico and petroleum Equipment to block mobile phone signals, radio- Mexico MEX/363/Add.2 08/02/2018 Not given communications and the transmission of data (85432005) Non-automatic weighing instruments - National tariff MEX/428 08/02/2018 09/30/2018 Mexico heading: 8423 Valves used in transportable liquefied petroleum MEX/336/Add.1 08/06/2018 Not given Mexico gas (LPG) containers (tariff heading 84.81) Mexico MEX/427 08/02/2018 09/22/2018 Units of measurement Mexico MEX/429 08/09/2018 10/04/2018 Electrical installations Demountable liquefied petroleum gas (LPG) con- MEX/430 08/14/2018 10/07/2018 Mexico tainers (HS 731100) Mexico MEX/366/Add.1 08/17/2018 Not given Other seats (94.01.80.01) Pressurized non-demountable liquefied petroleum gas (LPG) containers installed outdoors, and LPG MEX/431 08/17/2018 10/13/2018 Mexico containers installed on tanker-trucks and semi- trailers (HS 731100) Mexico MEX/229/Add.4 08/27/2018 Not given Software and electronic systems Valves used in transportable liquefied petroleum MEX/336/Add.2 08/27/2018 Not given Mexico gas (LPG) containers (tariff heading 84.81) Mexico MEX/341/Add.2 08/27/2018 Not given Portable cooking appliances (tariff heading 84.38) Mexico MEX/364/Add.2 08/27/2018 Not given Mobile terminal equipment (87.17.69.10) Mexico MEX/432 08/27/2018 10/21/2018 Alcoholic beverages New Zealand NZL/83 08/16/2018 10/22/2018 Single use plastic shopping bags (HS 392321)

International Trade Compliance Update | September 2018 102

Baker McKenzie

Final Date Country Notification Date Issued for Merchandise Covered Comments

Nicaragua NIC/112/Add.1 08/15/2018 Not given Food additives Nicaragua NIC/116/Add.1 08/15/2018 Not given Pharmaceutical products

Nicaragua NIC/158 08/15/2018 10/14/2018 Milk powder and cream powder Nigeria NGA/5 08/30/2018 10/02/2018 Tea Oman OMN/377 07/31/2018 09/29/2018 Paneer Cheese Oman OMN/378 07/31/2018 09/29/2018 Ricotta Cheeses Bread made from wheat flour or mixed with other OMN/379 08/01/2018 09/30/2018 Oman types of grain flour

Panama PAN/98 08/15/2018 10/14/2018 Food additives

Panama PAN/99 08/15/2018 10/14/2018 Milk powder and cream powder

Panama PAN/100 08/15/2018 10/14/2018 Medicines for human use Paraguay PRY/104/Add.1 08/27/2018 Not given Incandescent and Fluorescent Lamps 06.02.90.90 Other live plants (including their roots), cuttings and slips; mushroom spawn; 0602.10.90.00 Unrooted cuttings and slips; PER/68/Add.1 08/02/2018 Not given Peru 0602.20.00.00 Trees, shrubs and bushes, grafted or not, of kinds which bear edible fruit or nuts; 1209.99.10.00 Seeds of fruit trees or forest trees Pharmaceutical products classified under Chapter PER/92/Add.1 07/31/2018 Not given Peru 30 of the Harmonized System or Customs Tariff Pharmaceutical products: Biological products (HS Peru PER/105 08/01/2018 10/28/2018 Chapter 30; 3002.20, 3002.20.10.00, 3002.20.20.00, 3002.20.30.00, 3002.20.90.00) Polychlorinated biphenyls (HS 2710.19.33.00; 2710.91.00.00; 3824.82.00.00; 8504.21.19.00; Peru PER/106 08/28/2018 10/23/2018 8504.21.90.00; 8504.22.10.00; 8504.22.90.00; 8504.23.00.00; 8532.10.00.00; 3824.81.00.00; 3824.82.00.00; 3824.83.00.00; 3822.00.30.00) Qatar QAT/543 07/31/2018 09/29/2018 Paneer Cheese Qatar QAT/544 07/31/2018 09/29/2018 Ricotta Cheeses

Rwanda RWA/170 07/24/2018 09/22/2018 Green tea

Rwanda RWA/171 07/24/2018 09/22/2018 Flavoured black tea

Rwanda RWA/172 07/24/2018 09/22/2018 Tea, instant

Rwanda RWA/173 07/24/2018 09/22/2018 Fuel additives

Rwanda RWA/174 07/24/2018 09/22/2018 Pyrethrin and Permethrin based insecticides

Rwanda RWA/175 07/24/2018 09/22/2018 Antiseptics

Rwanda RWA/176 07/24/2018 09/22/2018 Disinfecting liquid synthetic detergents

Rwanda RWA/177 07/24/2018 09/22/2018 Popcorn

Rwanda RWA/178 07/24/2018 09/22/2018 Tea, herbal infusions

Rwanda RWA/179 07/24/2018 09/22/2018 Ikigage

International Trade Compliance Update | September 2018 103

Baker McKenzie

Final Date Country Notification Date Issued for Merchandise Covered Comments

Rwanda RWA/180 07/24/2018 09/22/2018 Chemicals for purification of water

Rwanda RWA/181 07/24/2018 09/22/2018 Spatial application mosquito repellents Saint Lucia LCA/54 08/01/2018 09/29/2018 Labelling of prepackaged goods

Saudi Arabia SAU/1082 07/31/2018 09/29/2018 Paneer Cheese

Saudi Arabia SAU/1083 07/31/2018 09/29/2018 Ricotta Cheeses Slovenia SVN/103 08/21/2018 10/20/2018 Tobacco, tobacco products Slovenia SVN/104 08/21/2018 10/20/2018 Protection against fire Molluscs, whether in shell or not, live, fresh, chilled, frozen, dried, salted or in brine; aquatic invertebrates other than crustaceans and molluscs, live, South Africa ZAF/221/Add.1 08/14/2018 Not given fresh, chilled, frozen, dried, salted or in brine; flours, meals and pellets of aquatic invertebrates other than crustaceans, fit for human consumption (HS 0307)

South Africa ZAF/202/Add.1 08/16/2018 Not given Pneumatic tyres (HS 4011.10)

South Africa ZAF/203/Add.1 08/16/2018 Not given Pneumatic tyres (HS 401120)

Switzerland CHE/232 08/06/2018 10/05/2018 Laser pointer products Water Dispensers; Other (HS 841869), - Electric Taiwan Economy TPKM/331 07/31/2018 09/29/2018 instantaneous or storage water heaters and immer- sion heaters (HS 851610) Masks claiming protection against PM 2.5; Other TPKM/332 07/31/2018 09/29/2018 Taiwan Economy (HS 630790)

Taiwan Economy TPKM/333 08/01/2018 09/30/2018 Weighing instruments; Volumeters TPKM/225/Add. 08/07/2018 Not given Organic agricultural products Taiwan Economy 4 Laser pointers; Lasers, other than laser diodes (HS TPKM/334 08/10/2018 10/09/2018 Taiwan Economy 901320) TPKM/321/Add. Industrial Protective Helmets; Safety headgear (HS 08/14/2018 Not given Taiwan Economy 1 650610) TPKM/318/Add. 08/20/2018 Not given Base Station Radio Frequency Equipment Taiwan Economy 1 TPKM/319/Add. 08/20/2018 Not given Terminal equipment Taiwan Economy 1 TPKM/312/Rev. 08/24/2018 Not given Prepackaged food containing allergenic substances Taiwan Economy 1/Add.1 TPKM/334/Add. Laser pointers; Lasers, other than laser diodes (HS 08/23/2018 Not given Taiwan Economy 1 901320) TPKM/318/Add. 08/29/2018 Not given Base Station Radio Frequency Equipment Taiwan Economy 1/Corr.1 TPKM/319/Add. 08/29/2018 Not given Terminal equipment Taiwan Economy 1/Corr.1 Gas grills -- For gas fuel or for both gas and other TPKM/322/Add. 08/31/2018 Not given fuels (HS 732111), -- For gas fuel or for both gas Taiwan Economy 1 and other fuels (HS 732181) Railway or tramway locomotives, rolling-stock and Taiwan Economy TPKM/335 08/28/2018 10/27/2018 parts thereof; railway or tramway track fixtures and fittings and parts thereof; mechanical (including

International Trade Compliance Update | September 2018 104

Baker McKenzie

Final Date Country Notification Date Issued for Merchandise Covered Comments

electro-mechanical) traffic signalling equipment of all kinds (HS 86) Piston air compressors, fixed speed rotary air compressors and variable speed rotary air compres- TPKM/336 08/28/2018 10/27/2018 Taiwan Economy sors; Air compressors mounted on a wheeled chassis for towing (HS 841440), - Other (HS 841480)

Tanzania TZA/208 07/24/2018 09/22/2018 Cold rolled steel section

Tanzania TZA/209 07/24/2018 09/22/2018 Steel for the reinforcement of concrete

Tanzania TZA/210 07/24/2018 09/22/2018 Steel for the reinforcement of concrete

Tanzania TZA/211 07/24/2018 09/22/2018 Steel for the reinforcement of concrete

Tanzania TZA/212 07/24/2018 09/22/2018 Pre-painted metal coated steel sheets and coils

Tanzania TZA/213 07/24/2018 09/22/2018 Mild steel nails Hot dip galvanized plain and corrugated steel TZA/214 07/24/2018 09/22/2018 Tanzania sheets Radio communication equipment used in land mo- THA/515 07/26/2018 09/24/2018 Thailand bile Radio communication equipment used in land mo- THA/516 07/26/2018 09/24/2018 Thailand bile THA/513/Add.1/ 08/08/2018 Not given Foods Thailand Corr.1

Thailand THA/517 08/09/2018 10/08/2018 Telecommunications terminal equipment

Thailand THA/518 08/09/2018 10/08/2018 Telecommunications terminal equipment Tubes, pipes and hoses, and fittings therefor (for Thailand THA/494/Rev.1 08/13/2018 Not given example, joints, elbows, flanges), of plastics (HS 3917)

Thailand THA/519 08/16/2018 10/15/2018 Domestic refrigerating appliances (HS 8418)

Thailand THA/520 08/16/2018 10/15/2018 Domestic refrigerating appliances (HS 8418)

Thailand THA/521 08/27/2018 10/26/2018 Cold-formed structural steel sections

Trinidad and Tobago TTO/119 08/16/2018 10/15/2018 Cold formed steel

Turkey TUR/121 08/13/2018 09/01/2018 Sugar

Uganda UGA/896 07/27/2018 09/25/2018 Toothpaste, Dentifrices (HS 330610)

Uganda UGA/542/Add.2 08/07/2018 Not given Fresh pineapples

Uganda UGA/543/Add.2 08/07/2018 Not given Avocados Tomato products, canned tomatoes. Tomatoes pre- Uganda UGA/544/Add.2 08/07/2018 Not given pared or preserved otherwise than by vinegar or acetic acid (HS 2002)

Uganda UGA/545/Add.2 08/07/2018 Not given Tomato sauce, tomato ketchup (HS 210320)

Uganda UGA/546/Add.1 08/07/2018 Not given Tomato juice (HS 200950)

Uganda UGA/547/Add.2 08/07/2018 Not given Tomato paste, tomato puree

Uganda UGA/548/Add.2 08/07/2018 Not given Fresh tomatoes (HS 0702)

International Trade Compliance Update | September 2018 105

Baker McKenzie

Final Date Country Notification Date Issued for Merchandise Covered Comments

Uganda UGA/549/Add.2 08/07/2018 Not given Passion fruits

Uganda UGA/550/Add.2 08/07/2018 Not given Fresh mangoes (HS 0804, 080450) Fresh potato tuber (HS 0701, 071010, 200410, UGA/551/Add.2 08/07/2018 Not given Uganda 200520)

Uganda UGA/552/Add.2 08/07/2018 Not given Fresh carrots (HS 0706, 070610)

Uganda UGA/553/Add.2 08/07/2018 Not given Fresh sweet bananas (HS 0803, 080300) Chilli sauce: Sauces and preparations therefor; Uganda UGA/554/Add.2 08/07/2018 Not given mixed condiments and mixed seasonings; mustard flour and meal and prepared mustard (HS 2103)

Uganda UGA/555/Add.2 08/07/2018 Not given Fresh onions (HS 071220)

Uganda UGA/593/Add.2 08/07/2018 Not given Dairy based beverages (HS 0401, 0402)

Uganda UGA/612/Add.2 08/07/2018 Not given Food grade material, Food packaging

Uganda UGA/613/Add.1 08/07/2018 Not given Egg powder Poultry feed premix; Preparations of a kind used in UGA/617/Add.2 08/07/2018 Not given Uganda animal feeding (HS 2309) Dairy cattle feed premix; Preparations of a kind UGA/618/Add.2 08/07/2018 Not given Uganda used in animal feeding (HS 2309)

Uganda UGA/623/Add.2 08/07/2018 Not given Pulse flour Plant protein-based yoghurt; Buttermilk, curdled milk and cream, yogurt, kephir and other fermented or acidified milk and cream, whether or not concen- UGA/624/Add.2 08/07/2018 Not given Uganda trated or containing added sugar or other sweetening matter or flavoured or containing added fruit, nuts or cocoa (HS 0403)

Uganda UGA/627/Add.2 08/07/2018 Not given Disinfectants (HS 380840)

Uganda UGA/631/Add.2 08/07/2018 Not given Disinfectants (HS 380840)

Uganda UGA/897 08/08/2018 10/07/2018 Curry powder (HS 0910)

Uganda UGA/898 08/08/2018 10/07/2018 Spices and condiments (HS 09)

Uganda UGA/899 08/08/2018 10/07/2018 Vinegar (HS 22)

Uganda UGA/900 08/08/2018 10/07/2018 Vinegar (HS 22)

Uganda UGA/901 08/09/2018 10/08/2018 Ginger (HS 091010)

Uganda UGA/902 08/09/2018 10/08/2018 Turmeric (HS 0910)

Uganda UGA/903 08/09/2018 10/08/2018 Cloves (HS 0907)

Uganda UGA/904 08/09/2018 10/08/2018 Pilau masala (HS 2103, 09)

Uganda UGA/905 08/09/2018 10/08/2018 Tea masala (HS 09) Pillows for domestic use, Synthetic fibre filled pillows for domestic use. Mattress supports; articles of Uganda UGA/594/Add.2 08/13/2018 Not given bedding and similar furnishing (for example, mat- tresses, quilts, eiderdowns, cushions, poufs and pillows) fitted with springs or stuffed or internally

International Trade Compliance Update | September 2018 106

Baker McKenzie

Final Date Country Notification Date Issued for Merchandise Covered Comments

fitted with any material or of cellular rubber or plastics, whether or not covered (HS 9404) Pillows for domestic use, Plumage filled pillows for domestic use. Mattress supports; articles of bedding and similar furnishing (for example, mattress- Uganda UGA/595/Add.2 08/13/2018 Not given es, quilts, eiderdowns, cushions, poufs and pillows) fitted with springs or stuffed or internally fitted with any material or of cellular rubber or plastics, whether or not covered (HS 9404)

Uganda UGA/600/Add.2 08/13/2018 Not given Men's open shoes (HS 64)

Uganda UGA/601/Add.2 08/13/2018 Not given Men's closed shoes (HS 64)

Uganda UGA/602/Add.2 08/13/2018 Not given Ladies' closed shoes (HS 64) Onshore oil and gas production operations. Petro- Uganda UGA/607/Add.2 08/13/2018 Not given leum gases and other gaseous hydrocarbons. (HS: 2711), -- Natural gas (HS: 271111) Shoe polish; Polishes, creams and similar prepara- UGA/625/Add.2 08/13/2018 Not given Uganda tions for footwear or leather (HS 340510)

Uganda UGA/626/Add.2 08/13/2018 Not given Disinfectants (HS 380840)

Uganda UGA/637/Add.2 08/13/2018 Not given Denatured Ethanol Sausages and similar products, of meat, meat offal Uganda UGA/906 08/13/2018 10/12/2018 or blood; food preparations based on these products (HS 1601)

Uganda UGA/428/Add.2 08/14/2018 Not given Dried fish Rastrineobola Argentea

Uganda UGA/430/Add.2 08/14/2018 Not given Dried and salted dried fish Smoked fish; Smoke flavoured fish; Smoked dried UGA/524/Add.2 08/14/2018 Not given Uganda fish (HS 0305)

Uganda UGA/525/Add.2 08/14/2018 Not given Quick frozen prawns and shrimp

Uganda UGA/526/Add.2 08/14/2018 Not given Frozen octopus

Uganda UGA/527/Add.2 08/14/2018 Not given Fish sausages Crackers from marine and freshwater fish; Crackers UGA/528/Add.2 08/14/2018 Not given Uganda from crustacean and molluscan shellfish

Uganda UGA/529/Add.2 08/14/2018 Not given Frozen tuna loins

Uganda UGA/588/Add.2 08/14/2018 Not given Fish protein concentrate

Uganda UGA/589/Add.2 08/14/2018 Not given Fried fish Frozen lobster tails. Tunas (of the genus Thunnus), skipjack or stripe-bellied bonito (Euthynnus (Katsuwonus) pelamis), excluding livers and roes : (HS: 03023), - Rock lobster and other sea crawfish UGA/590/Add.2 08/14/2018 Not given Uganda (Palinurus spp., Panulirus spp., Jasus spp.) (HS: 030611), - Rock lobster and other sea crawfish (Palinurus spp., Panulirus spp., Jasus spp.) (HS: 030621), - Lobster (HS: 160530) Tunas, canned tunas. Tunas, skipjack and bonito UGA/591/Add.2 08/14/2018 Not given Uganda (Sarda spp.) (HS: 160414)

International Trade Compliance Update | September 2018 107

Baker McKenzie

Final Date Country Notification Date Issued for Merchandise Covered Comments

Uganda UGA/603/Add.2 08/14/2018 Not given Ladies' open shoes (HS 64)

Uganda UGA/604/Add.2 08/14/2018 Not given Children's shoes (HS 64)

Uganda UGA/605/Add.2 08/14/2018 Not given Children's shoes (HS 64) Organic fertilizer. Animal or vegetable fertilisers, whether or not mixed together or chemically treat- Uganda UGA/609/Add.2 08/14/2018 Not given ed; fertilisers produced by the mixing or chemical treatment of animal or vegetable products. (HS 3101)

Uganda UGA/610/Add.2 08/14/2018 Not given Inorganic foliar fertilizer (HS 31)

Uganda UGA/611/Add.2 08/14/2018 Not given Magnesium sulphate fertilizer (HS 31)

Uganda UGA/614/Add.2 08/14/2018 Not given Copper rod, bar and wire

Uganda UGA/615/Add.2 08/14/2018 Not given Steel tubes for non-pressure purposes

Uganda UGA/616/Add.2 08/14/2018 Not given Plastic cling wrap film for food contact use Macadamia kernels; Edible fruit and nuts; peel of UGA/619/Add.2 08/14/2018 Not given Uganda citrus fruit or melons (HS 08)

Uganda UGA/620/Add.2 08/14/2018 Not given Roasted macadamia Cashew kernels; Coconuts, Brazil nuts and cashew Uganda UGA/621/Add.1 08/14/2018 Not given nuts, fresh or dried, whether or not shelled or peeled (HS 0801) Roasted cashew kernels.. Coconuts, Brazil nuts Uganda UGA/622/Add.2 08/14/2018 Not given and cashew nuts, fresh or dried, whether or not shelled or peeled (HS 0801) Sodium bicarbonate - Sodium hydrogencarbonate UGA/628/Add.2 08/14/2018 Not given Uganda (sodium bicarbonate) (HS 283630)

Uganda UGA/633/Add.2 08/14/2018 Not given Bare foil for Food Packaging (HS 760120) Caustic Soda (Sodium hydroxide); Sodium hydrox- UGA/907 08/14/2018 10/13/2018 Uganda ide (caustic soda) (HS 28151) Sodium hydroxide; Sodium hydroxide (caustic so- UGA/908 08/14/2018 10/13/2018 Uganda da) (HS 28151)

Uganda UGA/909 08/16/2018 10/15/2018 Unsweetened condensed milk (HS 0401)

Uganda UGA/910 08/16/2018 10/15/2018 Sodium hydroxide (caustic soda) (HS 28151)

Uganda UGA/911 08/16/2018 10/15/2018 Milk and processed milk products Whipping cream; Milk and cream, not concentrated nor containing added sugar or other sweetening Uganda UGA/912 08/16/2018 10/15/2018 matter. (HS 0401), Milk and cream, concentrated or containing added sugar or other sweetening matter. (HS 0402)

Uganda UGA/913 08/20/2018 10/19/2018 Sterile surgical blades (HS 90)

Uganda UGA/914 08/27/2018 10/26/2018 Instant tea (HS 09)

Uganda UGA/915 08/27/2018 10/26/2018 Blended black tea (HS 09)

Uganda UGA/916 08/27/2018 10/26/2018 Green tea (HS 09)

International Trade Compliance Update | September 2018 108

Baker McKenzie

Final Date Country Notification Date Issued for Merchandise Covered Comments

Flavoured black tea; Coffee, tea, mate and spices UGA/917 08/27/2018 10/26/2018 Uganda (HS 09) Icing sugar; Sugars and sugar confectionery (HS 17), Sugars, chemically pure, other than sucrose, lactose, maltose, glucose and fructose; sugar UGA/918 08/27/2018 10/26/2018 Uganda ethers, sugar acetals and sugar esters, and their salts, other than products of heading 29.37, 29.38 or 29.39 (HS 2940) United Arab Emirates ARE/437 07/31/2018 09/29/2018 Paneer Cheese United Arab Emirates ARE/438 07/31/2018 09/29/2018 Ricotta Cheeses United Arab Emirates ARE/439 08/09/2018 10/08/2018 Tobacco, tobacco products and related equipment United States USA/1057/Rev.1 08/01/2018 Not given Chemicals United States USA/1339/Add.2 08/01/2018 Not given Oxazolidine, 3,3'-methylenebis [5-methyl- United States USA/521/Add.4 08/06/2018 Not given Manufactured housing (HS 8716) United States USA/1330/Add.1 08/06/2018 Not given Grain sorghum oil United States USA/1386 08/06/2018 08/31/2018 Chemical substances United States USA/1386/Add.1 08/08/2018 Not given Chemical substances USA/552/Rev.1/ Air conditioners, heat pumps (HS 8415.10, 08/15/2018 Not given United States Add.6 8418.61) United States USA/1109/Add.4 08/15/2018 Not given Fire prevention code United States USA/1325/Add.3 08/14/2018 Not given Flammable refrigerants United States USA/1342/Add.1 08/15/2018 Not given Underground storage tanks United States USA/1344/Add.1 08/15/2018 Not given Portable electric spas United States USA/1347/Add.1 08/14/2018 Not given Pools, hot tubs and spas United States USA/1365/Add.1 08/15/2018 Not given Stationary source emission standards United States USA/1387 08/21/2018 10/1/2018 Natural gas transmission pipelines United States USA/1388 08/21/2018 Not given Poultry (HS 0207) United States USA/1389 08/21/2018 09/17/2018 Chemical substances United States USA/1390 08/21/2018 10/12/2018 Processed vegetables United States USA/293/Add.8 08/27/2018 Not given Sunscreen Drug Products (HS 3304.10-99) Jewellery, precious metals, and pewter (HS 7116, USA/1061/Add.2 08/27/2018 Not given United States 7117)

United States USA/1107/Add.5 08/27/2018 Not given Building codes

United States USA/1310/Add.2 08/27/2018 Not given Pork carcasses

United States USA/1389/Add.1 08/27/2018 Not given Chemical substances United States USA/1391 08/27/2018 10/30/2018 Nuclear power plant engineering United States USA/1392 08/30/2018 09/26/2018 Chemical substances United States USA/1393 08/30/2018 09/26/2018 Chemical substances United States USA/1394 08/30/2018 10/23/2018 Motor vehicles

Uruguay URY/22 08/21/2018 Not given All tobacco products

International Trade Compliance Update | September 2018 109

Baker McKenzie

Final Date Country Notification Date Issued for Merchandise Covered Comments

Viet Nam VNM/134 08/09/2018 10/07/2018 Goods in general, safety

Yemen YEM/146 07/31/2018 09/29/2018 Paneer Cheese

Yemen YEM/147 07/31/2018 09/29/2018 Ricotta Cheeses

CBP Rulings: Downloads and Searches

As US Customs and Border Protection (CBP) issues several thousand rulings a year, it is not practical to list each ruling. However, almost all rulings issued by US Customs or CBP from 1993 to the present and many issued before 1993 are available for search and downloading using the CROSS search engine. Over 190,000 such rulings are in the database. CBP Rulings: Revocations or Modifications

The following table summarizes proposals made or actions taken that were published in the weekly Customs Bulletin and Decisions during the past month by US Customs and Border Protection pursuant to 19 U.S.C. §1625(c) to revoke or modify binding rulings or treatment previously accorded to substantially identical merchandise.

Published in Ruling(s) to be Old Classifica- Comments Due CBP Bulletin New Classification or Product(s) or Issue(s) Modified (M) or tion or Posi- New Ruling (C) or Effective (P) Proposed Position Revoked (R) tion Date (E) (A) Action

Proposed Revocations/modifications 9817.00.96 & Tariff classification of cer- Not eligible for (P) 08-15-18 NY A89600 M 6108.22.9020/ HQ H297341 (C) 09-14-18 tain knit stretch briefs 9817.00.96 6108.22.9030 Revocations/Modifications Tariff classification of a 6815.99.20 [GRI 1, 3(c), NY N245711 R 7116.20.40 HQ H293248 knife care set 6] (A) 08-15-18 (E) 10-15-18 Tariff classification of a hot 9017.20.8080 [GRI 1, 6; NY N239783 R 7116.20.40 HQ H293247 max soapstone holder EN to Chap 71, 90]

European Classification Regulations

The table below shows the Classification Regulations that were published in the Official Journal during the period covered by this International Trade Compliance Update.

Commission Classification Implementing Description of the goods Reasons (CN code) Regulation

An article made of hot rolled non-alloy 8517 70 00 Classification is determined by general rules 1 (EU) 2018/1207 steel with a coating made of nickel silver and 6 for the interpretation of the Combined No- of 27-08-18 alloy. menclature, Note 2(b) to Section XVI and by the wording of CN codes 8517 and 8517 70 00 .

International Trade Compliance Update | September 2018 110

Baker McKenzie

Commission Classification Implementing Description of the goods Reasons (CN code) Regulation

It is presented in the shape of a round cap (diameter 2,7 cm) with slightly low- As the function of the article is not to assemble or ered centre, turned down into a hole, with fasten goods it cannot be classified as a screw or small air gaps inside the turned down as a bolt. Consequently, it cannot be considered part. The cap is connected to a hollow a part of general use as referred to in Note 2 to threaded shank (diameter 0,5 cm). The Section XV. Therefore, classification under head- total length of the article is 2,5 cm. ing 7318 is excluded.

The article is designed to be used as a The article is a part of cellular network base sta- tuning element in a specific bandpass tions within the meaning of Note 2(b) to Section filter (the bandpass filter is used in cellular XVI as it is essential for their operation, due to network base stations to transmit signals the article's specific design and dimensions, and of certain frequencies) filtering out the cannot be used for other purposes (see case C- upper and lower frequencies, by screwing 152/10 Unomedical ECLI:EU:C:2011:402, para- it into the bandpass filter chassis. graph 29). It is an essential part in the process of tuning. In the tuning process the round Consequently, the article is to be classified under cap acts as a resonator. In case of any CN code 8517 70 00 as a part of an apparatus damage to the surface of this round cap for the transmission or reception of voice, images there will be a distortion of the radio fre- or other data in a wirelesss network. quency waves. See image

A sensor based electrical analogue appa- 9027 10 10 Classification is determined by general rules 1, ratus (so-called ‘oxygen analyser’) meas- 3(b) and 6 for the interpretation of the Combined uring approximately 240 × 220 × 200 mm Nomenclature and by the wording of CN codes and weighing approximately 4,3 kg. 9027 , 9027 10 and 9027 10 10 .

The apparatus uses coulometric technol- The apparatus has characteristics and functions ogy in order to detect and measure trace of an apparatus for physical or chemical analysis oxygen and paramagnetic technology in (gas or smoke analysis apparatus) of heading order to accurately measure the percent- 9027 . See also the Harmonized System Explan- age of oxygen in pure gas streams and atory Notes (HSEN) to heading 9027 , first para- multi-gas backgrounds. It includes an graph, point (8), which covers electrical gas or LCD monitor to display the results of the smoke analysis apparatus for determining and measurement. It also includes an audio measuring the content of gases, used to analyse and visual alarm and analogue and digital combustible or burnt gases in coke ovens, gas outputs and two-way serial communica- producers, blast furnaces, etc. tion. (EU) 2018/1208 Classification under heading 9026 as instruments of 27-08-18 The apparatus is used in industrial gas or apparatus for measuring or checking the flow, process and quality control. level, pressure or other variables of liquids or gases is excluded as instruments and apparatus for physical or chemical analysis are more specifically covered by heading 9027 (see also the HSEN to heading 9026 , first paragraph, exclusion (d)).

The apparatus is a composite product within the meaning of GIR 3(b) and it is to be classified according to the component that gives the product its essential character. Detecting and measuring the oxygen within a gas is considered to be the function that gives the essential character to the apparatus.

The apparatus is therefore to be classified under

International Trade Compliance Update | September 2018 111

Baker McKenzie

Commission Classification Implementing Description of the goods Reasons (CN code) Regulation

CN code 9027 10 10 , as electronic gas or smoke analysis apparatus. Footwear (so-called ‘dancing shoe’) cov- 6405 20 99 Classification is determined by general rules 1 ering the foot but not the calf, open at the and 6 for the interpretation of the Combined No- vamp. menclature, Note 4 to Chapter 64 and by the wording of CN codes 6405 , 6405 20 and 6405 The footwear is made of one piece of 20 99 . textile material sewn together at the sole and the heel counter and has a textile The article is not excluded from Chapter 64 by lining. The sole has two leather pieces virtue of Note 1 (b) to Chapter 64 because the sewn on, one at the ball of the foot and article has parts of the outer sole sewn on. More- the other at the heel part. over, the raffled front part creates a round shaped relatively hard sole for the toes. The front textile part of the sole is raffled to create the round shape for the toes. As the material of the upper also forms part of the sole, in order to identify the demarcation between The textile part of the sole between the the upper and the sole, the sole is considered to two leather pieces is raffled and elasticat- be the portion of the footwear that does not cover ed by means of an elastic band sewn on the sides and the top of the foot (see also the the inside of the footwear. It serves to identification of the upper in the Harmonised Sys- tighten the sole from toes to heel when tem Explanatory Notes (HSEN) to Chapter 64, dancing. General, (D)).

The footwear has two pieces of cellular The constituent material of the outer sole is the foam covered with textile material sewn textile material, because it has the greatest sur- on the inside above the leather pieces, face area in contact with the ground when the which are slightly larger than the leather, shoe is in use (worn while standing on the yet smaller than the sole making contact ground) within the meaning of Note 4 to Chapter with the ground when the footwear is in 64 (see also the HSEN to Chapter 64, General, (EU) 2018/1209 use. (C)). of 27-08-18 The opening of the footwear can be tight- The article is therefore to be classified under CN ened by an elastic string. code 6405 20 99 as other footwear with uppers and outer soles of textile materials. Two elastic bands are fixed in the quarter area in order to secure the footwear to the foot.

When the footwear is in use (worn while standing on the ground) the part of the footwear that does not cover the sides and top of the foot and that makes contact with the ground consists of approximately 33 % leather and approximately 67 % textile materials.

See images.

International Trade Compliance Update | September 2018 112

Baker McKenzie

Amendments to the CN Explanatory Notes

The table below shows amendments to the explanatory notes to the Combined Nomenclature of the European Union that were published in the Official Journal during the period covered by this International Trade Compliance Update.

Official Journal CN code or page Description of Articles

Seats (other than those of heading 9402), whether or not convertible into beds, and parts 2018/C 305/04 Pg 379 CN 9401 thereof – new text added after existing text (30-08-18) and CN 9403 Other furniture and parts thereof - new text added after existing text 2018/C 305/05 Other furniture and parts thereof – new text and images added after existing text to illus- P 379 CN 9403 (30-08-18) trate what is not covered by this heading

Section 337 Actions

In the United States, section 337 of the Tariff Act of 1930 as amended (19 U.S.C. §1337) provides in rem relief from unfair practices in import trade, including unfair methods of competition in the importation of articles, importation and sale in the United States of articles which infringe US patents, registered trademarks, copyrights or mask works. Listed below are 337 actions published during the past month by the US International Trade Commission, the independent United States agency charged with enforcement of section 337.

Inv. № Commodity Action

Certain Beverage Brewing Capsules, Com- (RESCISSION PROCEEDING) Commission Determination to Institute a 337–TA–929 ponents Thereof, and Products Containing Rescission Proceeding; Temporary Rescission of the Remedial the Same Orders; Termination of the Proceeding (REMAND) Commission Determination Not to Review an Initial De- termination Granting a Joint Motion to Terminate the Investigation 337–TA–943 Certain Wireless Headsets as to Respondent GN Netcom A/S Based on a Settlement Agree- ment; Termination of the Investigation Certain X-Ray Breast Imaging Devices and 337–TA–1063 Notice of Request for Statements on the Public Interest Components Thereof Certain LED Lighting Devices, LED Power Commission Determination to Amend the Notice of Investigation to 337–TA–1081 Supplies, and Components Thereof Delete an Erroneously Included Respondent Commission Determination Not to Review an Initial Determination Certain Subsea Telecommunication Sys- 337–TA–1098 Granting a Motion for Leave to Amend the Complaint and Notice of tems and Components Thereof Investigation to Reflect a Corporate Name Change Certain Programmable Logic Controller Commission Determination Not to Review an Initial Determination 337–TA–1105 (PLCs), Components Thereof, and Prod- Granting A Motion of Non-Party North Coast to Intervene ucts Containing Same Commission Determination Not to Review an Initial Determination 337–TA–1108 Certain Jump Rope Systems Finding Sole Respondent in Default; Request for Written Submis- sions on Remedy, Bonding, and the Public Interest Commission Decision Not to Review an Initial Determination Certain Clidinium Bromide and Products Granting Complainants’ Unopposed Motion to Terminate the Inves- 337–TA–1109 Containing Same tigation Based on the Withdrawal of the Amended Complaint; Ter- mination of the Investigation Certain Magnetic Data Storage Tapes and (CONSOLIDATED MODIFICATION AND ENFORCEMENT PROCEEDING) No- 337–TA–1012 Cartridges Containing the Same tice of Institution of Modification Proceeding Certain Dental Ceramics, Products Thereof, 337–TA–1050 Notice of Request for Statements on the Public Interest and Methods of Making the Same 337–TA–1044 Certain Graphics Systems, Components Commission Final Determination Finding a Violation; Issuance of a

International Trade Compliance Update | September 2018 113

Baker McKenzie

Inv. № Commodity Action

Thereof, and Consumer Products Contain- Limited Exclusion Order and Cease and Desist Orders; Denial of ing the Same Motion To Amend; and Termination of the Investigation Certain Magnetic Tape Cartridges and 337–TA–1058 Notice of Request for Statements on the Public Interest Components Thereof Certain Digital Cameras, Software, and 337–TA–1059 Notice of Request for Statements on the Public Interest Components Thereof Commission Determination Not to Review an Initial Determination Certain Fuel Pump Assemblies Having Va- 337–TA–1101 Finding Sole Respondent in Default; Request for Written Submis- por Separators and Components Thereof sions on Remedy, Bonding, and the Public Interest Institution of an investigation based on an amended complaint filed Certain Water Filters and Components 337–TA–1126 on behalf of Electrolux Home Products, Inc. and KX Technologies, Thereof LLC alleging patent infringement Certain Microperforated Packaging Con- Institution of an investigation based on a complaint filed on behalf 337–TA–1127 taining Fresh Produce (II) of Windham Packaging, LLC alleging patent infringement Certain Lithography Machines and Systems Institution of an investigation based on a complaint filed on behalf 337–TA–1128 and Components Thereof (I) of Carl Zeiss SMT GmbH alleging patent infringement Certain Lithography Machines and Systems Institution of an investigation based on a complaint filed on behalf 337–TA–1129 and Components Thereof (II) of Carl Zeiss SMT GmbH alleging patent infringement

In addition to the above actions, the ITC has published notices indicating that it has received complaints filed on behalf of the following companies alleging violations of §337 with regard to the listed commodities and soliciting comments on any public interest issues raised by the complaints:

Ref. № Commodity Complaint filed on behalf of:

DN 3330 Certain Motorized Vehicles and Components Thereof FCA US LLC Heineken International B.V., Heineken Supply DN 3331 Certain Beverage Dispensing Systems and Components Thereof Chain B.V., and Heineken USA Inc. Certain Wireless Mesh Networking Products and Related Com- DN 3333 Sipco LLC ponents Thereof

Antidumping, Countervailing Duty and Safeguards Investigations, Orders & Reviews

In order to assist our clients in planning, we are listing antidumping, countervailing duty and safeguards notices published or posted during the past month from the US, Canada, Mexico, the EU, Australia, India, Brazil, and occasionally other countries. (Click on blue text for link to official document.)

Key: AD, ADD=antidumping, antidumping duty; CV, CVD=countervailing duty or subsidy; LTFV=less than fair value.

United States Department of Commerce, International Trade Administration (ITA)

Case № Merchandise/Country Action

A–580–839 Polyester Staple Fiber From S. Korea Rescission of ADD Administrative Review; 2017-2018 C–469–818 Ripe Olives From Spain Amended Final Affirmative CVD Determination and CVD Order A–469–817 Ripe Olives From Spain ADD Order A–570–064 Stainless Steel Flanges From China ADD Order

International Trade Compliance Update | September 2018 114

Baker McKenzie

United States Department of Commerce, International Trade Administration (ITA)

Case № Merchandise/Country Action

Postponement of Preliminary Determination in the CVD Investiga- C–570–087 Steel Propane Cylinders From China tion Initiation and Preliminary Results of ADD Changed Circumstances A–533–840 Certain Frozen Warmwater Shrimp From India Review A–580–878 Certain Corrosion-Resistant Steel Products Initiation of Anti-Circumvention Inquiries on the ADD and CVD Or- C–580–879 From S. Korea and Taiwan ders A–583–856 A–580–881 Certain Cold-Rolled Steel Flat Products From Initiation of Anti-Circumvention Inquiries on the ADD and CVD Or- C–580–882 S. Korea ders A–570–042 Stainless Steel Sheet and Strip From China Rescission of ADD Administrative Review; 2016-2018 Certain Corrosion-Resistant Steel Products Notice of Court Decision Not in Harmony with Final Determination A–580–878 From S. Korea of Investigation and Notice of Amended Final Results A–570–075 Certain Plastic Decorative Ribbon From China Preliminary Determination of Sales at LTFV A–570–073 Common Alloy Aluminum Sheet From China Amended Preliminary Affirmative Determination of Sales at LTFV Certain Frozen Warmwater Shrimp From Vi- A–552–802 Partial Rescission of ADD Administrative Review; 2017-2018 etnam Preliminary Results of CVD Administrative Review and Partial Re- C–475–819 Certain Pasta From Italy scission; 2016 Preliminary Results and Partial Rescission of ADD Administrative A–557–816 Certain Steel Nails From Malaysia Review; 2016-2017 Certain Uncoated Groundwood Paper From C–122–862 Final Affirmative CVD Determination Canada Certain Uncoated Groundwood Paper From A–122-861 Final Determination of Sales at LTFV Canada A–560–828 Certain Uncoated Paper From Indonesia Final Results of ADD Administrative Review; 2015-2017 A–570–992 Monosodium Glutamate From China Preliminary Results of the ADD Administrative Review; 2016-2017 Corrosion-Resistant Steel Products From S. A–580–878 Preliminary Results of ADD Administrative Review; 2016-2017 Korea Polyethylene Terephthalate Film, Sheet, and Preliminary Results and Partial Rescission of ADD Administrative A–533–824 Strip From India Review; 2016-2017 Certain Corrosion-Resistant Steel Products C–533–864 Preliminary Results of the CVD Administrative Review; 2015-2016 From India Certain Corrosion-Resistant Steel Products Preliminary Results of CVD Administrative Review, Rescission of C–580–879 From S. Korea Review, in Part, and Intent To Rescind, in Part; 2015-16 Diamond Sawblades and Parts Thereof From A–570–900 Preliminary Results of ADD Administrative Review; 2016-2017 China Preliminary Results of ADD Administrative Review and Partial Re- A–583–854 Certain Steel Nails From Taiwan scission of Administrative Review; 2016-2017 Polyethylene Terephthalate Film, Sheet, and Preliminary Results and Partial Rescission of CVD Administrative C–533–825 Strip From India Review; 2016 Certain Corrosion-Resistant Steel Products Preliminary Results of ADD Administrative Review and Partial Re- A–583–856 From Taiwan scission of ADD Administrative Review; 2016-2017 A–580–876 Welded Line Pipe From the S. Korea Amended Final Results of ADD Administrative Review; 2015-2016 Certain Corrosion-Resistant Steel Products A–533–863 Preliminary Results of ADD Administrative Review; 2016-2017 From India A–475–818 Certain Pasta From Italy Preliminary Results of ADD Administrative Review; 2016-2017 Polyethylene Terephthalate Film, Sheet, and Preliminary Results of ADD Administrative Review and Preliminary A–583–837 Strip From Taiwan Determination of No Shipments; 2016-2017 A–469–817 Ripe Olives From Spain Notice of Correction to ADD Order A–471–807 Certain Uncoated Paper From Portugal Final Results of ADD Administrative Review; 2015-2017 C–552–824 Laminated Woven Sacks From Vietnam Preliminary Affirmative CVD Determination and Alignment of Final

International Trade Compliance Update | September 2018 115

Baker McKenzie

United States Department of Commerce, International Trade Administration (ITA)

Case № Merchandise/Country Action

Determination With Final ADD Determination A–570–075 Certain Plastic Decorative Ribbon From China Postponement of Final Determination of Sales at LTFV C–570–076 Stainless Steel Butt-Weld Pipe Fittings From A–565–801 Initiation of ADD Changed Circumstances Review the Philippines Heavy Walled Rectangular Welded Carbon C–489–825 Preliminary Results of CVD Administrative Review; 2016 Steel Pipes and Tubes From Turkey Preliminary Results of the ADD Administrative Review, and Prelim- A–570–985 Xanthan Gum From China inary Determination of No Shipments; 2016-2017 Notice of Partial Rescission of ADD Administrative Review; 2016- A–533–843 Certain Lined Paper Products From India 2017 A–580–895 Low Melt Polyester Staple Fiber From S. Ko- ADD Orders A–583–861 rea and Taiwan Notice of Court Decision Not in Harmony with Final Rescission of A–570–970 Multilayered Wood Flooring From China the ADD New Shipper Review Final Affirmative CVD Determination and Final Affirmative Deter- C–533–878 Stainless Steel Flanges From India mination of Critical Circumstances Final Affirmative Determination of Sales at LTFV and Final Affirma- A–533–877 Stainless Steel Flanges From India tive Critical Circumstance Determination C–533–839 Carbazole Violet Pigment 23 from India Rescission of CVD Administrative Review; 2016 A–570–979 Crystalline Silicon Photovoltaic Cells, Whether Preliminary Results of Changed Circumstances Reviews, and C–570–980 or Not Assembled Into Modules, From China Consideration of Revocation of the AD and CVD Orders, in Part C–522–813 Steel Wire Garment Hangers From Vietnam Continuation of CVD Order Postponement of Preliminary Determination in the LTFV Investiga- A–570–082 Steel Wheels From China tion Certain Pneumatic Off-the-Road Tires From C–533–870 Rescission of CVD Administrative Review; 2016-2017 India Preliminary Affirmative Determination of Circumvention of the ADD A–570–928 Uncovered Innerspring Units From China Order A–533–883 Postponement of Preliminary Determinations in the LTFV Investi- A–588–878 Glycine From India, Japan, and Thailand gations A–549–837 Small Diameter Graphite Electrodes From A–570–929 Notice of Rescission of ADD Administrative Review; 2017-2018 China Certain Carbon and Alloy Steel Cut-to-Length C–570–048 Amended Final Results of CVD Expedited Review Plate From China Preliminary Results of the Five-Year Sunset Review of the 2013 A–201–820 Fresh Tomatoes From Mexico Suspension Agreement Preliminary Determination of Sales at LTFV and Postponement of A–484–803 Large Diameter Welded Pipe From Greece Final Determination A–570–077 Large Diameter Welded Pipe From China Preliminary Determination of Sales at LTFV Preliminary Determination of Sales at LTFV and Postponement of A–489–833 Large Diameter Welded Pipe From Turkey Final Determination Preliminary Determination of Sales at LTFV, Postponement of Fi- A–122–863 Large Diameter Welded Pipe From Canada nal Determination, and Extension of Provisional Measures Preliminary Determination of Sales at LTFV and Postponement of A–580–897 Large Diameter Welded Pipe From S. Korea Final Determination A–533–881 Large Diameter Welded Pipe From India Preliminary Determination of Sales at LTFV A–570–983 Drawn Stainless Steel Sinks From China Continuation of AD and CVD Orders C–570–984 C–570–089 Steel Racks From China Postponement of Preliminary Determination in CVD Investigation

International Trade Compliance Update | September 2018 116

Baker McKenzie

United States Department of Commerce, International Trade Administration (ITA)

Case № Merchandise/Country Action

Postponement of Preliminary Determination in the LTFV Investiga- A–570–084 Certain Quartz Surface Products From China tion Amendment to Notice of Court Decision Not in Harmony with the A–570–970 Multilayered Wood Flooring From China Second Amended Final Determination and Amendment to Notice of Third Amended Final Determination of the ADD Investigation Notice of Court Decision Not in Harmony with Final Scope Ruling A–570–881 Malleable Cast Iron Pipe Fittings From China and Notice of Amended Final Scope Ruling Pursuant to Court De- cision C–570–063 Cast Iron Soil Pipe Fittings From China CVD Order Preliminary Affirmative Determination of Sales at LTFV and Post- A–570–079 Cast Iron Soil Pipe Fittings From China ponement of Final Determination Amended Final Determination of Sales at Less Than Fair Value A–570–062 Cast Iron Soil Pipe Fittings From China and Antidumping Duty Order Preliminary Affirmative CVD Determination and Alignment of Final C–570–083 Certain Steel Wheels From China Determination with Final ADD Determination

United States International Trade Commission (USITC)

Inv. № Merchandise/Country Action

701–TA–365-366 Certain Pasta From Italy and Turkey (Fourth Review) Institution of Five-Year Reviews 731–TA–734-735 (Final) Determinations that an industry in the United States is ma- Low Melt Polyester Staple Fiber 731–TA–1378-1379 terially injured by reason of imports that have been found by From Korea and Taiwan Commerce to be sold in the United States at LTFV (Final) Determination that an industry in the United States is not materially injured or threatened with material injury by reason of 731–TA–1380 Tapered Roller Bearings From Korea imports that have been found by Commerce to be sold in the Unit- ed States at LTFV (Preliminary) Determinations that there is a reasonable indication 701–TA–608 that an industry in the United States is materially injured by reason Steel Racks From China 731–TA–1420 of imports that are alleged to be sold in the United States at LTFV and to be subsidized by the government of China 701–TA–609 (Preliminary) Institution of ADD and CVD Investigations and Steel Trailer Wheels From China 731–TA–1421 Scheduling of Preliminary Phase Investigations (Review) Determination that revocation of the CV and ADD orders 701–TA–489 Drawn Stainless Steel Sinks from would be likely to lead to continuation or recurrence of material 731–TA–1201 China injury to an industry in the United States within a reasonably fore- seeable time. (Final) Determinations that an industry in the United States is materially injured by reason of imports that have been found by Commerce to be sold in the United States at LTFV and to be sub- 701–TA–583 Cast Iron Soil Pipe Fittings From sidized by the government of China. The Commission also deter- 731– TA–1381 China mines that an industry in the United States is not materially injured or threatened with material injury by reason of imports of drain bodies from China that are sold in the United States at LTFV and subsidized by the government of China. 701-TA-592 Plastic Decorative Ribbon From Chi- (Final) Scheduling of the final phase of CVD and ADD investiga- 731-TA-1400 na tions.

International Trade Compliance Update | September 2018 117

Baker McKenzie

Canadian International Trade Tribunal (CITT)

Ref. Number Merchandise/Country Action

Hot-Rolled Carbon Steel Plate Originating in or RR-2017-004 Order and Reasons Issued Exported From China

Canada Border Services Agency (CBSA)

Ref. Number Merchandise/Country Action

OCTG2 2018 Certain Oil Country Tubular Goods (OCTG) Notice of Initiation of Normal Value Review (Goods exported UO02 exported to Canada from Indonesia by PT Citra Tubindo Tbk. (Citra Tubindo)) Certain Carbon Steel Welded Pipe from Paki- CSWP3 2018 IN Initiation of an Investigation – Statement of Reasons stan, the Philippines, Turkey and Vietnam. Certain Corrosion-Resistant Steel Sheet from COR 2018 IN Initiation of an Investigation – Statement of Reasons China, Chinese Taipei), India and S. Korea Dumping and Subsidizing: Certain Sucker SR 2018 IN Notice of Preliminary Determinations Rods from China Dumping and Subsidizing: Certain Cold-Rolled CRS 2018 IN Steel In Coils or Cut Lengths from China, Notice of Preliminary Determinations South Korea and Vietnam Certain 54-Inch Gypsum Board From the US, Termination of Investigation. CITT determined that the evi- imported into Canada for use or consumption dence does not disclose a reasonable indication that the GB2 2018 IN in the provinces of British Columbia, Alberta, dumping has caused injury or retardation or is threatening to Saskatchewan, and Manitoba, as well as the cause injury to the domestic industry Yukon and Northwest Territories Certain Unitized Wall Modules Originating in or UWM 2018 ER Notice of Initiation of Expiry Review Investigation Exported From China

NAFTA Panels

Ref. Number Merchandise/Country Action CVD dispute has been terminated and the pan- US: USA-CDA-2015-1904-01 Supercalendered Paper from Canada elists were discharged CA: USA-CDA-2015-1904-01 Supercalendered paper from Canada Completion of Panel Review

Mexico - Ministry of Economy

Ref. № Merchandise/Country Action Short Fiber Polyester Originating in S. Korea, EC 10/18 Commencement of the review of ADD regardless of the country of export Cold-Rolled Sheets Originating in S. Korea, Resolution declaring the commencement of the examination of EC 06/18 regardless of the country of export the validity of the commitments assumed by certain exporters Chicken Legs and Thighs Originating in the EC 08/17 United States of America, regardless of the Resolution reviewing the effectiveness of the AD measures country of export. Aluminum Foil Spools Originating in Chi- EA 05/18 Resolution accepting petition and initiating an AD investigation na, regardless of the country of export

International Trade Compliance Update | September 2018 118

Baker McKenzie

European Union

Ref. Number Merchandise/Country Action

Amending Commission Implementing Regulation (EU) 2015/1518 (EU) 2018/1121 Biodiesel originating in the USA imposing a definitive ADD following an expiry review Mixtures of urea and ammonium nitrate 2018/C 284/08 originating in Russia, Trinidad and To- Notice of initiation of an AD proceeding bago and the USA Silicon originating in Bosnia and Herze- (EU) 2018/1193 Commission Implementing Decision terminating the AD govina and Brazil

Australian Anti-Dumping Commission

Ref. Number Merchandise/Country Action

2018/136 Hot Rolled Coil Steel From Taiwan #454 Longer period for the decision of the Minister Pineapple Fruit, Consumer From Thailand 2018/135 Longer period for the decision of the Minister #455 Steel Pallett Racking From China and Malay- Further Extension of time to publish Statement of Essential 2018/134 sia #441 Facts and Final Report 2018/132 Aluminium Extrusions From Malaysia #490 Initiation of a review of anti-dumping measures 2018/131 Grinding Balls From China #491 Initiation of an Accelerated Review 2018/130 Various Monthly Status Report - July 2018 Extension of time to publish Statement of Essential Facts and Final 2018/129 Pineapple Fruit From Thailand #477 Report 2018/128 Introduction of Model Control Codes 2018/127 Aluminium Extrusion From China #EX0068 Initiation of an Exemption Inquiry 2018/124 Aluminium Road Wheels From China #464 Extension of time to Statement of Essential Facts and Final Report 2018/123 Aluminium Extrusions From China #485 Termination of Accelerated Review #485 Findings in relation to an Accelerated Review of Anti-Dumping 2018/117 Grinding Balls From China #476 Measures Resealable Can End Closures From Malay- 2018/116 Findings in relation to an Accelerated Review sia #474 Steel Reinforcing Bar From Korea and Thai- 2018/112 Initiation of a Review of Anti-Dumping Measures land #486/489 2018/109 Steel Reinforcing Bar From Thailand #472 Findings in relation to an Accelerated Review 2018/108 Steel Reinforcing Bar From Thailand #471 Findings in relation to an Accelerated Review

New Zealand Ministry of Business, Innovation and Employment

Date Merchandise/Country Action

Hollow Steel Sections from China and July 2018 Provisional Dumping Measures imposed Malaysia MBIE concludes that provisional measures are not necessary to prevent July 2018 Hollow Steel Sections from China material injury during the remaining period of investigation.

China Ministry of Commerce (MOFCOM)

Ref. № Merchandise/Country Action

Halogenated Butyl Rubber Originating in the United 40, 2018 Final Ruling of the AD Investigation States, the European Union and Singapore

International Trade Compliance Update | September 2018 119

Baker McKenzie

China Ministry of Commerce (MOFCOM)

Ref. № Merchandise/Country Action

65, 2018 White Feather Broilers Originating in Brazil Extension of the AD Investigation for 6 months Bisphenol A Originating in Japan, South Korea, Singapore 60, 2018 Final Review of AD Measures and Taiwan N-Butanol Originating in Taiwan, Malaysia and the United 67, 2018 Preliminary Ruling on the AD Investigation States Stainless Steel Billets and Stainless Steel Hot Rolled 62, 2018 Sheets/Ropes Originating in the European Union, Japan, Initiation of AD Investigation Korea and Indonesia

Government of India Ministry of Finance (Department of Revenue)

Notification № Merchandise/Country Action

Methylene Chloride originating in or 38/2018-Cus (ADD) Continues imposition of definitive Anti-dumping Duty (ADD) up to exported from European Union and 02-08-18 and inclusive of 20 October, 2019 United State of America 39/2018-Cus (ADD) Paracetamol originating in or exported Continues imposition of definitive ADD up to and inclusive of 26 20-08-18 from China PR April, 2019 Notification No. 8/2018-Cus (ADD) dated 15 March, 2018 imposing 40/2018-Cus (ADD) Ofloxacin originating in or exported ADD amended to provide Tariff items covered in Product Under 20-08-18 from China PR Consideration Provisional assessment of M/s. Natore Jute Mills, Bangladesh 41/2018-Cus (ADD) Jute Products originating in or export- (Producer) and M/s PNP Jute Trading LLC, USA (Exporter/ Trader) 24-08-18 ed from Bangladesh and Nepal until completion of New Shipper Review 42/2018-Cus (ADD) Jute Products originating in or export- Provisional assessment of M/s Aziz Fibres Limited, Bangladesh 24-08-18 ed from Bangladesh and Nepal (Producer/ Exporter) until completion of New Shipper Review

Government of India Ministry of Commerce and industry (Department of Commerce)

Notification № Merchandise/Country Action

INITIATIONS Welded Stainless Steel Pipes and 6/22/2018- DGAD Tubes originating in or exported from Initiates Countervailing duty/ Anti-subsidy Investigation 09-08-18 China PR and Vietnam 6/18/2018- DGAD Saccharin originating in the People’s Initiates Countervailing duty/ Anti-subsidy Investigation 10-08-18 Republic of China Aluminium Alloy Road Wheels (ARWs) 7/31/2018-DGTR originating in or exported from China Initiates Sunset Review Investigation 10-08-18 PR, Korea RP and Thailand 6/21/2018- DGTR Fluoroelastomers (FKM) originating in Initiates Countervailing duty/ Anti-subsidy Investigation 14-08-18 or exported from China PR 6/23/2018-DGTR High Speed Steel of Non Cobalt Grade Initiates Anti-dumping investigation 14-08-18 from Brazil, China PR and Germany 06/19/2018-DGAD Atrazine Technical originating in or Initiates Countervailing duty/ Anti-subsidy Investigation 27-08-18 exported from China PR ORAL HEARINGS 6/13/2018-DGAD Saccharin originated in or exported Schedules oral hearing on 11 September, 2018 in Anti-dumping 03-08-18 from Indonesia Investigation

International Trade Compliance Update | September 2018 120

Baker McKenzie

Government of India Ministry of Commerce and industry (Department of Commerce)

Notification № Merchandise/Country Action

7/14/2018-DGAD O-Acid originating in or exported from Schedules oral hearing on 24 August, 2018 in Anti-circumvention 06-08-18 China PR Investigation 7/3/2018-DGAD Jute Sacking Bags/Sacking Cloth orig- Schedules oral hearing on 28 August, 2018 in Anti-circumvention 06-08-18 inated in or exported from Bangladesh Investigation 4, 4 Diamino Stilbene 2, 2 Disulphonic 7/22/2018-DGAD Schedules oral hearing on 12 September, 2018 in Sunset Review Acid (DASDA) originating in or export- 06-08-18 Investigation ed from China PR 07/16/2018-DGAD Paracetamol originating in or exported Schedules oral hearing on 29 August, 2018 in Sunset Review In- 06-08-18 from China PR vestigation 14/20/2016-DGAD Normal Butanol (NBA) originating in or Schedules oral hearing on 13 August, 2018 in Anti-dumping Inves- 07-08-18 exported from Saudi Arabia tigation New Pneumatic Tyres for Buses and 6/8/2018-DGAD Schedules oral hearing on 28 August, 2018 in Countervailing Duty/ Lorries originating in or exported from 07-08-18 Anti-subsidy Investigation China PR 7/20/2018-DGAD Nonyl Phenol originating in or exported Schedules oral hearing on September 5, 2018 in Sunset Review 20-08-18 from Chinese Taipei Investigation Linear Alkyl Benzene originating in or 14/20/2015-DGAD Schedules oral hearing on 30 August, 2018 for change in name exported from Iran, Qatar and China 24-08-18 request in Anti-dumping Investigation PR Acetone originating in or exported from 7/26/2018-DGAD Schedules oral hearing on September 18, 2018 in second Sunset European Union, Singapore, South 27-08-18 Review Investigation Africa and United States of America FINAL FINDINGS 7/16/2017-DGAD Caustic Soda originating in or exported Final Finding issued in Third Sunset Review Investigation 01-08-18 from Saudi Arabia and USA 14/6/2016-DGAD Ofloxacin originating in or exported Corrigendum issued modifying Final Finding 02-08-18 from China PR Nylon Filament Yarn (Multi Filament) 14/33/2016-DGAD originating in or exported from Euro- Final Finding issued in Anti-dumping Investigation 06-08-18 pean Union and Vietnam Graphite Electrodes of all diameters 7/13/2018-DGAD originating in or exported from China Final Finding issued in Mid-Term Review Investigation 08-08-18 PR 7/1/2018-DGAD Flat Base Steel Wheels from China PR Final Finding issued in Sunset Review Investigation 09-08-18 OTHERS 4, 4 Diamino Stilbene 2, 2 Disulphonic 07/22/2018-DGAD Extends time granted for submission of questionnaire in Sunset Acid (DASDA) originating in or export- 01-08-18 Review Investigation ed from China PR Linear Alkyl Benzene originating in or Change in name request by M/s Qatar and Petrochemical Market- 14/20/2015-DGAD exported from Iran, Qatar and China ing and Distribution Company (Muntajat) Q.J.S.C to Muntajat 06-08-18 PR Q.P.J.S.C in Anti-dumping Investigation

Brazil Ministry of Industry, Foreign Trade and Services

Reference Merchandise/Country Action

Nitrile rubber, originating in South Korea CAMEX № 53 Imposes a definitive ADD, for a period of up to five years and France Colorless float glass with a thickness of CAMEX № 56 Apply definitive ADD to specific companies (one name changed) 2 mm to 19 mm originating in Saudi

International Trade Compliance Update | September 2018 121

Baker McKenzie

Brazil Ministry of Industry, Foreign Trade and Services

Reference Merchandise/Country Action

Arabia, China, Egypt, UAE, the USA and Mexico

Opportunity to Request Administrative Review In an August 7, 2018 Federal Register notice, the US Department of Commerce announced that it will receive requests to conduct administrative reviews of various antidumping (AD) and countervailing duty (CVD) orders and findings with August anniversary dates:

AD/CVD Proceedings - Country/ Merchandise Case No. Period

Antidumping Duty Proceedings Germany: Seamless Line and Pressure Pipe A-428-820 8/1/17 - 7/31/18

Sodium Nitrite A-428-841 8/1/17 - 7/31/18 Editor, International Trade India: Finished Carbon Steel Flanges A-533-871 2/8/17 - 7/31/18 Compliance Update Italy: Finished Carbon Steel Flanges A-475-835 2/8/17 - 7/31/18 Japan: Brass Sheet & Strip A-588-704 8/1/17 - 7/31/18 Stuart P. Seidel Tin Mill Products A-588-854 8/1/17 - 7/31/18 Washington, D.C. Malaysia: Polyethylene Retail Carrier Bags A-557-813 8/1/17 - 7/31/18 +1 202 452 7088 Mexico: Light-Walled Rectangular Pipe and Tube A-201-836 8/1/17 - 7/31/18 [email protected] R of Korea: Dioctyl Terephthalate (Dotp) A-580-889 2/3/17 - 7/31/18 Large Power Transformers A-580-867 8/1/17 - 7/31/18 This may qualify as “Attorney Ad- vertising” requiring notice in some Light-Walled Rectangular Pipe and Tube A-580-859 8/1/17 - 7/31/18 jurisdictions. Prior results do not SR of Vietnam: Frozen Fish Fillets A-552-801 8/1/17 - 7/31/18 guarantee a similar outcome. Thailand: Polyethylene Retail Carrier Bags A-549-821 8/1/17 - 7/31/18 The PR of China: Hydrofluorocarbon Blends A-570-028 8/1/17 - 7/31/18 Please see copyright and Floor-Standing, Metal-Top Ironing Tables and A-570-888 8/1/17 - 7/31/18 acknowledgements on the last Parts Thereof A-570-888 8/1/17 - 7/31/18 page Laminated Woven Sacks A-570-916 8/1/17 - 7/31/18 Light-Walled Rectangular Pipe and Tube A-570-914 8/1/17 - 7/31/18 Passenger Vehicle and Light Truck Tires A-570-016 8/1/17 - 7/31/18 Petroleum Wax Candles A-570-504 8/1/17 - 7/31/18 Polyethylene Retail Carrier Bags A-570-886 8/1/17 - 7/31/18 Sodium Nitrite A-570-925 8/1/17 - 7/31/18 Steel Nail A-570-909 8/1/17 - 7/31/18 Sulfanilic Acid A-570-815 8/1/17 - 7/31/18 Tetrahydrofurfuryl Alcohol A-570-887 8/1/17 - 7/31/18 Tow-Behind Lawn Groomers and Parts Thereof A-570-939 8/1/17 - 7/31/18 Ukraine: Silicomanganese A-823-805 8/1/17 - 7/31/18

Countervailing Duty Proceedings India: Finished Carbon Steel Flanges C-533-872 11/29/16- 12/31/17 R of Korea: Stainless Steel Sheet and Strip in Coils C-580-835 1/1/17 - 12/31/17 The PR of China: Laminated Woven Sacks C-570-917 1/1/17 - 12/31/17 Light-Walled Rectangular Pipe and Tube C-570-915 1/1/17 - 12/31/17 Passenger Vehicle and Light Truck Tires C-570-017 1/1/17 - 12/31/17 Sodium Nitrite C-570-926 1/1/17 - 12/31/17 Suspension Agreements None

Requested Reviews In an August 10, 2018 Federal Register notice, the US Department of Commerce announced that it has received timely requests to conduct administrative reviews

International Trade Compliance Update | September 2018 122

Baker McKenzie

of various antidumping and countervailing duty orders and findings with June anniversary dates. See actual notices for companies requesting review:

AD/CVD Proceedings - Country/ Merchandise Case No. Period

Antidumping Duty Proceedings Belgium: Carbon and Alloy Steel Cut-To-Length Plate A–423–812 11/14/16–4/30/18 Germany: Carbon and Alloy Steel Cut-To-Length Plate A–428–844 11/14/16–4/30/18 S. Korea: Carbon and Alloy Steel Cut-To-Length Plate A–580–887 11/14/16–4/30/18 Spain: Finished Carbon Steel Flanges A–469–815 2/8/17–5/31/18 Chlorinated Isocyanurates A–469–814 6/1/17–5/31/18 PR of China: Aluminum Extrusions A–570–967 5/1/17–4/30/18 Chlorinated Isocyanurates A–570–898 6/1/17–5/31/18 Polyester Staple Fiber A–570–905 6/1/17–5/31/18 Silicon Metal A–570–806 6/1/17–5/31/18 Tapered Roller Bearings A–570–601 6/1/17–5/31/18 Countervailing Duty Proceedings S Korea: Carbon and Alloy Steel Cut-To-Length Plate C–580–888 4/4/17–12/31/17 PR of China: High Pressure Steel Cylinders C–570–978 1/1/17–12/31/17 Suspension Agreements None

Initiation of Sunset Reviews In an August 1, 2018, Federal Register notice, the US Department of Commerce advised that it was automatically initiating a five-year (“Sunset”) review of the antidumping and countervailing duty orders listed below.

AD/CVD DOC Case ITC Case No. Country Merchandise No.

A-475-818 731-TA-734 Italy Certain Pasta (4th Review) C-475-819 701-TA-365 Italy Certain Pasta (4th Review) A-489-805 731-TA-735 Turkey Certain Pasta (4th Review) C-489-806 701-TA-366 Turkey Certain Pasta (4th Review)

Advance Notification of Sunset Reviews In an August 1, 2018, Federal Register notice, the US Department of Commerce advised that the following cases were scheduled for five-year (“Sunset”) reviews for September 2018.

AD/CVD Proceedings - Merchandise/Country Case No.

Silicomanganese from India A-533-823 (3rd Review) Welded Large Diameter Line Pipe from Japan A-588-857 (3rd Review) Silicomanganese from Kazakhstan A-834-807 (3rd Review) Silicomanganese from Venezuela A-307-820 (3rd Review) No Sunset Review of countervailing duty orders is scheduled for initiation in September 2018 No Sunset Review of suspended investigations is scheduled for initiation in September 2018.

International Trade Compliance Update | September 2018 123

Baker McKenzie

Mattias Hedwall Global Chair

International Commercial & Trade

International Commercial & Trade Leadership Team

Regional Chairs / Steering Committee

Kana Itabashi Ulf Wauschkuhn Alejandro C. Mesa-Neira Michael Santa Maria Tokyo Munich Bogota Dallas Asia Pacific EMEA Latin America North America

IC&T Focus Groups

Product Liability / Anticorruption / Agency & Distribution / Franchising Customs & Trade Agreements Compliance Liaison

Will Woods Ulrich Ellinghaus Fred Burke Terrie Gleason Dallas Frankfurt Ho Chi Minh City San Francisco Supply Chain / Logistics Sanctions / Export Controls JV / FDI / Emerging Markets

Peerapan Tungsuwan Nick Coward & Janet Kim Miguel Noyola Bangkok Washington DC Chicago/Washington DC

©2018 Baker & McKenzie. All rights reserved. Baker & McKenzie International is a Swiss Verein with member law firms around the world. In accordance with the common terminology used in professional service organizations, reference to a “partner” means a person who is a partner, or equivalent, in such a law firm. Similarly, reference to an “office” means an office of any such law firm.

This may qualify as “Attorney Advertising” requiring notice in some jurisdictions. Prior results do not guarantee a similar outcome. This UPDATE is issued to inform Baker & McKenzie clients and other interested parties of legal developments that may affect or otherwise be of interest to them. The comments above do not constitute legal or other advice and should not be regarded as a substitute for specific advice in individual cases. Before you send an e-mail to Baker & McKenzie, please be aware that your communications with us through this message will not create a lawyer- client relationship with us. Do not send us any information that you or anyone else considers to be confidential or secret unless we have first agreed to be your lawyers in that matter. Any information you send us before we agree to be your lawyers cannot be protected from disclosure. NOTE: This Update contains public sector information licensed under the Open Government Licence v3.0 of the United Kingdom. In addition, the Update uses material pursuant to European Commission policy as implemented by Commission Decision of 12 December 2011.

International Trade Compliance Update | September 2018 124